EUR/USD Forecast: Dollar firmer as risk sentiment turns sour

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0867

Market eyes on plummeting crude oil prices dragging the market’s sentiment.
The coronavirus pandemic may start to ease soon, the crisis will remain for longer.
EUR/USD confined to a range defined by Fibonacci levels.

Fear is giving the greenback an impulse ahead of the US opening, with the EUR/USD pair trading at around 1.0850 after another failed attempt to advance beyond a Fibonacci resistance level at 1.0890. The financial world is watching crude oil prices, as the WTI barrel is trading near $10.00, a result of the ongoing coronavirus pandemic keeping global economies frozen. The commodity is dragging equities lower, which in turn, underpin the greenback.

The EU released its February Current Account this Monday, which showed a seasonally adjusted surplus of €40.2 B, and the Trade Balance for the same month, which came in at€25.8 B. Germany published the March Producer Price Index, which came in at -0.8%, worse than the previous -0.4% and the expected -0.7%. The US, on the other hand, published the Chicago Fed National Activity Index, which fell in March to -4.19 from 0.06 previously.

EUR/USD short-term technical outlook

The EUR/USD pair has been confined to the same range defined by Fibonacci levels since last Wednesday, with attempts to leave the area being quickly reverted. Support is being provided by the 61.8% retracement of the latest daily advance around 1.0830, while sellers surge in the 1.0890 price zone.

The short-term picture is neutral-to-bearish, as, in the 4-hour chart, technical indicators are turning marginally lower within neutral levels, as the price struggles with a mild-bearish 20 SMA. The larger moving averages stand above the current level.

Support levels: 1.0830 1.0790 1.0750

Resistance levels: 1.0925 1.0960 1.1000

View Live Chart for the EUR/USD

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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