EUR/USD Forecast: Nearing critical 1.0900 figure

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0886

Coronavirus keeps spreading in Europe, spooking investors into safety.
US data missed the market’s expectations, hurting the greenback.
EUR/USD faces next relevant resistance at 1.0900, the 38.2% retracement of its latest daily slump.

The financial world was all about sentiment for a second consecutive day. The American dollar recovered some of its Monday losses throughout the first half of the day, but resumed its decline with the US opening, amid poor local data and government yields collapsing, raising speculation of a possible recession in the world’s largest economy. Meanwhile, more European countries reported coronavirus cases and fears it becomes a pandemic kept high-yielding assets on the losing side.

The EUR/USD pair surged to 1.0887 a fresh one-week high, with the common currency lacking follow-through amid fears of economic slowdown also hitting the Union. The German Federal Statistical Office confirmed 2019 Q4 GDP at 0.0%, confirming economic weakness in the Union. As for the US, data came in below expected, as the February Richmond Fed Manufacturing Index came in at -2 vs 20 previously and the 13 expected. Also, the CB Consumer Confidence Index resulted at 130.7, below the 132.6 expected, as the January index was downwardly revised from 131.6 to 130.4. Wednesday will bring no macroeconomic data of relevance.

EUR/USD short-term technical outlook

The EUR/USD pair is finishing the day near its daily high and above the 23.6% retracement of its latest daily decline, the immediate support at 1.0850, with the next Fibonacci resistance at 1.0900. The 4-hour chart shows that the pair is holding above a bullish 20 SMA, although the 100 SMA keeps heading south above the current level, converging with the 38.2% retracement of the mentioned decline. Technical indicators consolidate near overbought levels, favouring additional gains without confirming them. Beyond the mentioned 1.0900 figure, bears will probably step back and wait for higher levels.

Support levels: 1.0850 1.0810 1.0770

Resistance levels: 1.0900 1.0930 10960

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.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.