EUR/USD Forecast: Corrective decline loses momentum

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2034

Falling equities put a halt to the dollar’s sell-off and helped it recover some ground.
The absence of relevant macroeconomic data extends into Wednesday.
EUR/USD corrected overbought conditions but is far from bearish.

The EUR/USD pair extended its monthly advance to 1.2079, retreating afterwards to end the day with modest losses in the 1.2030 region. The dollar took a breath as global equities plunged without a clear catalyst. Generally speaking, the absence of first-tier macroeconomic data and falling oil prices undermined equities demand. The greenback got to recover some ground ahead of the daily close, but there are no signs that the current dollar’s advance could continue.

Germany published the March Producer Price Index, which surprised to the upside by printing at 0.9% MoM and 3.7% YoY. The US had nothing to offer. The macroeconomic calendar will remain empty for both economies this Wednesday.

EUR/USD short-term technical outlook

The EUR/USD pair has corrected extreme overbought conditions in the near-term, but the risk of a steeper decline seems limited. The 4-hour chart shows that technical indicators have retreated from extreme overbought readings, currently holding within positive levels and with the RSI already losing bearish momentum. The 20 SMA maintains its bullish slope above the longer ones, providing dynamic support at around 1.1205.

Support levels: 1.2005 1.1960 1.1920

Resistance levels: 1.2045 1.2085 1.2130

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.