EUR/USD Forecast: A retest of the year-low on the cards

Valeria Bednarik FXStreet

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

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.

EUR/USD remains on the back foot below 1.1850

EUR/USD resumes its downtrend on Wednesday, navigating the area below the 1.1850 level in a context of modest gains in the US Dollar, while investors gear up for a slew of US data prior to the publication of the key FOMC Minutes.

GBP/USD flirts with daily highs near 1.3580

GBP/USD manages to set aside two consecutive daily declines and trades with slight gains in the 1.3580 zone on Wednesday. Cable’s uptick comes despite acceptable gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.