EUR/USD Current price: 1.1296
- European data revived concerns about slowing economic growth.
- Wall Street poised to open lower, tracking its overseas counterparts' behavior.
The EUR/USD pair fell below the 1.1300 level and traded at 1.1274, its lowest for the week, as demand for the greenback resumed ahead of the US opening. Dollar's strength came with no specific catalyst, although the positive sentiment that led the way at the beginning of the week began fading, with menaces from US President Trump to impose tariffs on vehicles imported to the country, affected the common currency negatively. Data coming from the EU didn't help, as Italian industrial sales collapsed, while the EU Current account post a seasonally adjusted surplus of €16.0B in December, well below the previous one. The German ZEW survey showed that economic sentiment improved modestly in February, both for the country and the Union, with the latest at -16.6 vs. the previous -18.2.
US Fed's Mester is set to speak ahead of the opening, while the country will release the NAHB Housing Market Index for February foreseen at 59 vs. the previous 58. In the meantime, equities are down in Europe, anticipating a soft start to the day in the United States.
The EUR/USD pair attempted to recover some ground but remains below the 1.1300 figure, and at risk of extending its decline, according to the 4 hours chart, as the pair is barely holding around a flat 20 SMA, still below the larger ones, as technical indicators offer modest downward slopes, the Momentum around its 100 level and the RSI now at 46, skewing the risk to the downside. A break below the mentioned daily low opens the door for a retest of 1.1233, this year low, with further declines probably resulting in a break of the 1.1200 figure.
Support levels: 1.1275 1.1230 1.1190
Resistance levels: 1.1340 1.1380 1.1425
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