EUR/USD Current Price: 1.1984
- Demand for the greenback picked up as panic remains.
- European and US data disappointed, doing no favour to collapsing equities.
- EUR/USD at fresh March lows and poised to test the year low at 1.0777.
The EUR/USD pair is trading at fresh March lows, having lost the 1.1000 level ahead of US data, as investors can’t shrug off fears. Demand for the dollar is the main theme this Tuesday, as the world is running for safety. The shared currency is being further affected by plummeting confidence, as the March ZEW Survey showed that Economic Sentiment collapsed to -49.5 in the Union, and -49.5 in Germany. The assessment of the current situation in the country came in at -43.1.
Wall Street collapsed on Monday, and while sentiment improved during Asian trading hours, it turned back south as European traders reached their desks. The US released February Retail Sales, which came in worse than expected, down in the month 0.5%, while the core reading printed 0.0% vs an expected 0.4%. The discouraging figures surely won’t help equities to recover.
EUR/USD short-term technical outlook
The EUR/USD pair lost the 1.1000 level before the release of US figures, triggering stops and extending its slump afterwards to the current 1.0980 price zone. The pair is now trading below the 61.8% retracement of its February/March rally at 1.1050, a relevant resistance area. In the 4-hour chart, it has broken below all of its moving averages, while technical indicators have turned sharply lower, entering oversold territory with almost vertical slopes. Despite oversold conditions, the pair could continue to fall in the upcoming session, particularly if the risk-related sentiment remains sour.
Support levels: 1.0950 1.0920 1.0880
Resistance levels: 1.1015 1.1050 1.1090
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