EUR/USD Forecast: Bearish technical cues, sellers could aim back towards retesting 1.1200 handle


The EUR/USD pair posted its first down day in the previous five on Thursday, though bulls showed some resilience below the 1.1300 round figure mark. The shared currency was weighed down by softer than originally estimated German CPI print, rising 0.4% m/m and 1.5% y/y, which coupled with a modest pickup in the US Dollar demand prompted some profit-taking after the recent up-move of over 150-pips since last Friday. News that China is considering to delay the Trump-Xi meeting to at least April along with a goodish bounce in the US Treasury bond yields provided a minor lift to the greenback. However, disappointing second-tier US economic docket - initial weekly jobless claims and new home sales data, kept a lid on any strong USD upsurge and helped limit deeper losses. 

The pair managed to regain some positive traction during the Asian session on Friday as market participants now look forward to the final Euro-zone consumer inflation figures for some fresh impetus. Meanwhile, the US economic docket features the release of Empire state manufacturing index, industrial production and capacity utilization data, which followed by Prelim UoM Consumer Sentiment and JOLTS Job Openings might further collaborate towards producing some meaningful trading opportunities on the last day of the week. 

From a technical perspective, the overnight slide dragged the pair below support marked by the lower end of a short-term ascending trend-channel formation on the 1-hourly chart, albeit lacked strong bearish conviction. Hence, it would be prudent to wait for a follow-through selling before positioning for any further near-term depreciating move towards the 1.1250-45 region en-route 1.1225 support and the 1.1200 round figure mark. On the flip side, sustained move back above the 1.1325-30 area might negate the bearish set-up and accelerate the up-move towards 50-day SMA hurdle near the 1.1370 region before the pair eventually aims to reclaim the 1.1400 round figure mark.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD confined to a 20 pips' range

The EUR/USD pair spent Monday trading within a well-limited 20 pips' range, unable to attract speculative interest. Trade tensions and the absence of relevant data limit volatility even further.

EUR/USD News

GBP/USD consolidates its losses amid Brexit pessimism

GBP/USD is trading in the low 1.2700s, close to the lowest since January. UK PM May is set to present a new plan after cross-party talks failed and as her successors are waiting for her resignation.

GBP/USD News

USD/JPY rebounds to 110 as Wall Street starts erasing early losses

After edging higher to a two-week high of 110.30 during the Asian session, the USD/JPY pair reversed its direction and erased 50 pips to touch a session low 109.80 in the early trading hours of the NA session before rebounding modestly.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Updating the bullish signal level, now at $8,250 BTC/USD

The ceiling of the bear channel stops an army of Bitcoiners ready to go to the Moon. ETH/USD may extend its gains despite Bitcoin weakness. XRP/USD is facing increased volatility.

Read more

Gold stays flat below $1280, can FOMC's Powell wake up markets?

The XAU/USD pair pushed lower in the early trading hours of the European session to touch its lowest level in more than two weeks at $1273.75. 

Gold News

Majors

Cryptocurrencies

Signatures