EUR/USD analysis: bulls paused, but still leading the way

EUR/USD Current price: 1.0746

Major pairs closed the day little changed, as a Japanese holiday and a light macroeconomic calendar kept investors in cautious mode. The dollar recovered from an early slide, underpinned by news that the Brexit has an official  date: March 29th. Nevertheless, the greenback retains the week tone  triggered last week by the US Fed, settling against the EUR at 1.0738. There were some minor releases in Europe, including wage growth, which increased in the last quarter of 2016 to 1.6% from a previous downwardly revised 1.4%, a sign that underlying price pressures are still weak in the region. Also, Germany released its February PPI data, which came in as expected, up 0.2% in February when compared to the previous month, and by 3.1% yearly basis, beating expectations of a 2.9% advance. In the US, Fed's Evans repeated what the market already knew that three hikes are possible for this year as policy makers are confident on inflation going up.

US President Trump is set to speak at a rally at the Kentucky Exposition Center, in Louisville at the beginning of the Asian session, but the macroeconomic calendar will remain scarce at both shores of the Atlantic on Tuesday.

From a technical point of view, the intraday movement seems barely corrective, as the price held above the immediate short term support at 1.0730, and the 4 hours chart shows that the price is a few pips above a bullish 20 SMA, although technical indicators head south within positive territory, with the Momentum about to cross its mid-line towards the downside. It would take a break below 1.0700 however, to confirm a downward move, while only beyond 1.0785, the pair will be able to regain its upward strength.  

Support levels: 1.0730 1.0700 1.0660

Resistance levels: 1.0785 1.0820 1.0850

View Live Chart for the EUR/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.