EUR/USD Forecast: Risk skewed south, slow slide expected

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1085

German Producer Price Index came in-line with the market’s expectations.
US markets closed amid the Martin Luther King holiday.
EUR/USD bearish sub-1.1100, critical support at 1.1065.

The EUR/USD pair has reached a fresh January high of 1.1080, trading a few pips above this last. The American dollar remains strong against most major rivals as the latest US data suggest economic progress in the country. Germany released the December Producer Price Index, which rose by 0.1% MoM, meeting the market’s expectations, while the yearly reading came in at -0.2%, better than the -0.6% expected. US markets will remain closed today, amid the celebration of the Martin Luther King holiday.

EUR/USD short-term technical outlook

The EUR/USD pair is extending its decline below a daily ascendant trend line coming from November 29 daily low. The short-term picture suggests that the pair could continue falling, as, in the 4-hour chart, the pair is developing below all of its moving averages, with the 20 SMA accelerating south and about to cross below the 200 SMA. Technical indicators, in the meantime, head south near oversold levels. A critical support level comes at 1.1065, with a break below it exposing the 1.0980 level, the mentioned November low.

Support levels: 1.1065 1.1020 1.0980

Resistance levels: 1.1110 1.1145 1.1180

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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