Technical Bias: Bearish
Key Takeaways
- Euro is approaching a critical support area against the US dollar.
- A break below 1.3590 might trigger more losses in the EURUSD pair.
- EURUSD support seen at 1.3590 and resistance ahead at 1.3620.
The Euro continued to decline against the US dollar this past week, and currently consolidating ahead of a break.
Technical Analysis
EURUSD failed to break the 1.3650 resistance area during this past week, and moved lower to challenge the 1.3600 support area. There is a bullish trend line forming on the 4 hour timeframe for the pair. The recent downside was held just around the mentioned trend line, and the pair is currently consolidating around the same. The 200 simple moving average (SMA) on the 4 hour chart sits just around the 1.3605 level and the trend line support is at 1.3595. A break below the trend line support area might push the pair towards the 61.8% Fibonacci retracement level of the last move higher from the 1.3500 low to 1.3702 high. The mentioned fib level also represents the previous swing low, so it is likely that the Euro buyers might fight and try to protect further downside in the pair around the 1.3575 area. If they fail, then a move back towards the last low is certainly possible in the short term.
On the upside, an immediate resistance can be seen around a critical confluence area of 100 and 50 SMA (4 hours) at 1.3620. Any further strength might take the pair towards the 1.3650 resistance area where sellers are likely to appear again.
Euro Zone Industrial Production Data
The Euro Zone industrial production data will be published by the Eurostat later during today’s London session. The forecast is of a decline by 1.2%. If the outcome surpasses the expectation, then the Euro might gain bids moving ahead. Alternately, any disappointing reading would push the EURUSD pair lower.
Recommended Content
Editors’ Picks
AUD/USD holds steadily as traders anticipate Australian Retail Sales, Fed’s decision
The Aussie Dollar registered solid gains against the US Dollar on Monday, edged up by 0.55% on an improvement in risk appetite, while the Greenback was crushed by Japanese authorities' intervention. As Tuesday’s Asian session begins, the AUD/USD trades at 0.6564.
EUR/USD finds support near 1.0720 after slow grind on Monday
EUR/USD jostled on Monday, settling near 1.0720 after churning in a tight but lopsided range as markets settled in for the wait US Fed outing. Investors broadly expect US rates to hold steady this week, but traders will look for an uptick in Fed guidance for when rate cuts could be coming.
Gold prices soften as traders gear up for Fed monetary policy decision
Gold price snaps two days of gains, yet it remains within familiar levels, with traders bracing for the US Fed's monetary policy decision on May 1. The XAU/USD retreats below the daily open and trades at $2,334, down 0.11%, courtesy of an improvement in risk appetite.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Relief wave on altcoins likely as BTC shows a $5,000 range
Bitcoin price has recorded lower highs over the past seven days, with a similar outlook witnessed among altcoins. Meanwhile, while altcoins display a rather disturbing outlook amid a broader market bleed, there could be some relief soon as fundamentals show.
Gearing up for a busy week: It typically doesn’t get any bigger than this
Attention this week is fixated on the Federal Reserve's policy announcement scheduled for Wednesday. While the US central bank is widely expected to remain on hold, traders will be eager to discern any signals from the Fed regarding the possibility of future interest-rate cuts.