EUR/USD Forecast: Bears retain control and will try challenging 1.2000

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2063

A scarce macroeconomic calendar leaves financial assets in the hands of sentiment.
The US celebrates today the Martin L. King holiday, with all local markets closed.
EUR/USD is technically bearish and poised to challenge the 1.2000 threshold.

The EUR/USD pair has extended its slump to 1.2053 and trades nearby, with majors moving in slow motion amid a US holiday. The European session had little to offer so far today, although the market’s mood remains sour, with local indexes struggling to post some gains. The US celebrates today the Martin L. King holiday, with all local markets closed, anticipating a quiet American afternoon.

Speculative interest is still digesting the latest coronavirus-related news. Immunization through vaccines is on a bumpy start, with Pfizer announcing a delay in delivery in Europe last Friday. Nevertheless, smoother progress in vaccination is expected in the next few weeks, and so far is not a market’s concern. Investor’s focus is on Joe Biden’s presidential assumption on Wednesday and the ECB monetary policy decision on Thursday.

EUR/USD short-term technical outlook

The EUR/USD pair is trading at one-month lows and bearish in the near-term. The 4-hour chart shows that it has fallen further below all of its moving averages, with the 20 SMA accelerating south below the larger ones. The Momentum indicator consolidates within negative levels while the RSI does the same in overbought territory, without signs of bearish exhaustion.

Support levels: 1.2050 1.2010 1.1970

Resistance levels: 1.2090 1.2130 1.2180

View Live Chart for the EUR/USD

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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.

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