EUR/USD Forecast: Buyers hesitate, bearish below 1.0800

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0828

Encouraging Eurozone macroeconomic data fell short of boosting the Euro.
US Consumer Price Index and the European Central Bank decision stand out this week.
EUR/USD is technically neutral, limited buying interest favors a near-term slide.

The EUR/USD pair trades with a softer tone on Monday, down a handful of pips from its daily opening at 1.0835. The US Dollar is mixed across the FX board, particularly weak against commodity-linked rivals amid Gold soaring to fresh record highs, while grinding north vs European currencies.

The Euro is down despite mostly encouraging macroeconomic data from the Union. Germany reported that Industrial Production rose 2.1% MoM in February, beating expectations, while the Eurozone Sentix Investor Confidence improved to -5.9 in April from -10.5 in the previous month. The macroeconomic calendar, however, will remain scarce until Wednesday, when the United States (US) will publish the March Consumer Price Index (CPI). The European Central Bank (ECB) monetary policy announcement will follow on Thursday.

EUR/USD short-term technical outlook

From a technical point of view, the EUR/USD pair is little changed for a third consecutive day. The pair develops below all its moving averages in the daily chart, with a bearish 20 Simple Moving Average (SMA) gaining downward traction and providing dynamic resistance at 1.0845. At the same time, technical indicators stand directionless right below their midlines, offering a neutral stance.

EUR/USD is neutral-to-bearish in the near term. A bullish 20 SMA is about to cross a bearish 100 SMA, both a handful of pips above the current level. Technical indicators, in the meantime, head nowhere within neutral levels. The pair has a limited downward scope as demand for the US Dollar seems subdued across the FX board. Nevertheless, advances beyond the mentioned 1.0845 level seem unlikely.

Support levels: 1.0800 1.0750 1.0715

Resistance levels: 1.0845 1.0880 1.0920

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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