EUR/USD Analysis: bearish trend resumes as markets return
EUR/USD Current price: 1.1223
- Dollar strengthens as market mood improves, EUR/USD nearing yearly low.
- EU Consumer Confidence expected to bounce modestly in April.
The EUR/USD pair continued trading lifeless around 1.1250 at the beginning of the day, having peaked at 1.1260 during the European morning, as local equities kick-started the week with a soft tone. The pair, however, retreated from the mentioned high as market mood improved, helped by the PBoC, which said that better-than-expected Q1 data implies less urgency for RRR cuts. The dollar heads into the US opening with a strong tone, appreciating against most major rivals and with the EUR/USD pair at daily lows in the 1.1220 price zone.
So far today, no data were release although the US will shortly unveil March New Home Sales, seen down by 2.5%, while the EU will publish preliminary April Consumer Confidence, forecasted at -7.0 vs. the previous -7.2.
Following the holidays' upward correction, the EUR/USD pair resumed its decline, now breaking through last week low at 1.1225 and once again, below the 61.8% retracement of the 1.1183/1.1323 rally. The pair was contained these days by selling interest around the 50% retracement of such a rally, where in the 4 hours chart, the pair also has the 100 SMA. In the mentioned timeframe, the pair is now below all of its moving averages, while technical indicators turned sharply lower, the Momentum at neutral readings but the RSI at around 35, all of which expose the yearly low at 1.1175.
Support levels: 1.1200 1.1175 1.1130
Resistance levels: 1.1245 1.1280 1.1320
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
