EUR/USD Forecast: Bears will keep on pressuring towards sub-1.2000

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2041

Speculative interest awaits news on the next US stimulus package.
EU Q4 GDP resulted at -0.7% QoQ, better than anticipated.
EUR/USD turned bearish in the near-term, next support at 1.2020.

The EUR/USD pair fell to 1.2025, its lowest for this year, as the greenback keeps appreciating against its major peers. Meanwhile, stocks are up, with Wall Street poised to open with gains. The generalized optimism is based on looming US stimulus talks. US President Joe Biden and Republican senators will start discussing details later today.

The EU has published the preliminary estimate of the Q4 Gross Domestic Product, which came in at -0.7%, better than the -1.2% expected. The annual comparison resulted at -5.1%, also beating the -5.4% forecast. The US will publish the January ISM-NY Business Conditions Index and February IBD/TIPP Economic Optimism.

EUR/USD short-term technical outlook

The EUR/USD pair is trading around 1.2040, maintaining its bearish stance. The pair has broken below the 38.2% retracement of its November/January rally at 1.2060, and bears will continue to pressure as long as the pair remains below it. In the 4-hour chart, the pair has fallen further below bearish moving averages, while technical indicators resumed their declines within negative levels, reflecting growing selling interest.

Support levels: 1.2020 1.1970 1.1925

Resistance levels: 1.2060 1.2100 1.2145

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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