EUR/USD Analysis: bouncing from the 23.6% retracement of the 1.1175/1.1447 rally

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1388

Dollar´s corrective advance backed by risk-off mood.
EU Consumer Confidence expected to have remained depressed in March.

The EUR/USD pair lost the 1.1400 figure, having been steadily retreating after peaking at 1.1447 post-Fed´s announcement. The movement, which started as a correction, extended on the back of mounting risk aversion, correlated to Brexit uncertainty and renewed trade tensions between the US and China. Furthermore, minor US data just released were upbeat, giving the greenback an additional push. Weekly unemployment claims for the week ended March 15 decreased to 221K, better than the 225K forecasted, while the March Philadelphia Fed Manufacturing Survey came in at 13.7, also much better than the 4.5 expected by the market. Pending of release is the EU preliminary Consumer Confidence Index, seen at -7.1 vs. a previous -7.4.

The pair bottomed at 1.1378, now trading a handful of pips above the level, contained by buying interest aligned around the 23.6% retracement of the 1.1175/1.1447 rally at 1.1380. In the 4 hours chart, the 20 SMA maintains its bullish slope, extending its advance above the larger ones, while technical indicators erased extreme overbought conditions, now losing downward strength well into positive ground, suggesting that the pair may resume its advance from here, with 1.1420 being now the immediate resistance.

Support levels: 1.1375 1.1330 1.1295

Resistance levels: 1.1420 1.1460 1.1495

View Live chart for the EUR/USD

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.

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