EUR/USD Forecast: No love for the shared currency
EUR/USD Current Price: 1.0864
- Hopes about the coronavirus crisis improving diminished after mixed numbers from the most troubled countries.
- US Senator Bernie Sanders pulled out of the 2020 presidential race, clearing Biden’s path.
- EUR/USD range-bound below 1.0900 at risk of falling sub-1.0800.
It was a bad day for the greenback, but also for the shared currency. The American dollar remained under selling pressure against most major rivals throughout the first half of the day, weighed by the sour tone of Asian and European equities. It remained under pressure during US trading hours despite Wall Street recovered, this last, after US Senator Bernie Sanders announced that he would be pulling out of the 2020 presidential race, clearing Joe Biden's path to the Democratic nomination. In the EU, finance ministers failed to agree on a joint economic response to coronavirus, affecting demand for the EUR.
In regards of the coronavirus pandemic, hopes were dented by the latest updates, as the US reported roughly 1,800 deaths in one day, while the number of new cases increased in Italy, although the death toll continued to decrease. Hopes that economies will go back to normal business in the near future remain low.
The macroeconomic calendar had nothing to offer. The US Federal Reserve published the Minutes of its March 15 meeting, yet as expected those passed unnoticed. This Thursday, attention will be on the US Initial Jobless Claim report for the week ended March 27. The market expects it to be on the millions. The country will also publish March PPI, foreseen at 1.2% YoY.
EUR/USD short-term technical outlook
The EUR/USD pair has been trading range-bound, trapped between Fibonacci levels. The pair bottomed for the day at 1.0830, the 61.8% retracement of the latest daily advance, while sellers are aligned around the 50% retracement of the same rally at 1.0890. In the 4-hour chart, the 20 SMA stands flat at around 1.0830, reinforcing the static support level, while the 100 SMA grinds lower above the current price. Technical indicators hover around their midlines, lacing clear directional strength. Overall, the risk is skewed to the downside, with further declines clearer if the pair breaks below the mentioned 1.0830 level.
Support levels: 1.0830 1.0785 1.0740
Resistance levels: 1.0890 1.0925 1.0960
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.
