EUR/USD Forecast: About to challenge the 1.0770 support level

Valeria Bednarik FXStreet

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

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 weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.