EUR/USD Forecast: About to challenge the 1.0770 support level
EUR/USD Current Price: 1.0787
- EU Sentix Investor Confidence Index plummeted to -42.9 in April.
- Investors are more confident as the pandemic curves are giving signs of flattening in Europe.
- EUR/USD bearish, capped by the 61.8% retracement of its latest rally around 1.0830.
A light of hope is boosting sentiment this Monday, although EUR/USD has been unable to take note of the better mood. Equities are on the run globally, pushing US futures up, after some European countries reported that coronavirus new infections have begun to slow, while also reporting a decrease in the death toll. The lockdown seems to be the key, as it helps to slow the spread. Nevertheless, the crisis is far from over and reverting the stay-at-home orders seem far away, as most countries fear it would lead to another chaotic increase of contagions. In this scenario, economic growth is meant to keep suffering.
In the data front, Germany released February Factory Orders, which beat the market’s expectations, down by 1.4% in the month, and up by 1.5% when compared to a year earlier. The positive figures were ignored as pre-crisis data hardly matters. The EU Sentix Investor Confidence index plummeted to -42.9 in April, down from -17.1 in March and worse than the -30.3 expected. The figure weighs on the shared currency. The US won’t publish relevant macroeconomic data this Monday.
EUR/USD short-term technical outlook
The EUR/USD pair has been unable to surpass the 61.8% retracement of its latest daily advance at around 1.0830, meeting sellers around it. The pair is bearish, according to the 4-hour chart, as moving averages accelerate south above the current level, while technical indicators gain bearish traction within negative levels. The immediate support is the 1.0770 area, where the pair bottomed last Friday, with a break below the level exposing the yearly low at 1.0635.
Support levels: 1.0770 1.0725 1.0680
Resistance levels: 1.0830 1.0860 1.0900
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.
