EUR/USD Forecast: Under pressure, decline may continue

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0966

EU´s March inflation contracted stands now at 0.7% YoY.
The pandemic-related crisis continues, no bottom at sight.
EUR/USD at risk of resuming its slide on a break below 1.0925.

The EUR/USD pair is down for a second consecutive day, trading in the 1.0960 price zone ahead of Wall Street’s opening. The dollar continues to recover some ground after edging sharply lower at the end of the past week, although it gains are moderate, amid concerns related to the coronavirus pandemic and its effects on the global economy. The crisis keeps deepening with no bottom at sight. In this scenario, speculative interest moves back and forth depending on how the wind blows.

A packed calendar had little saying on prices action, as the market continues to ignore most data, as it’s pre-crisis. Nevertheless, there are some March figures starting to show, and those are not good news. March preliminary inflation in the EU is at 0.7% YoY, while the core reading resulted at 1.0%, below the previous and the expected. German Gross Domestic Product was confirmed at 0.4% in Q4, confirming the economy was fragile ahead of the current crisis. During the upcoming Asian session, CB Consumer Confidence is foreseen at 115.1 from 130.7 previously.

EUR/USD short-term technical outlook

The EUR/USD pair is hovering around the 38.2% retracement of its latest daily slump, retreating further from the 61.8% retracement of the same slide. The 4-hour chart shows that it has fallen below all of its moving averages, while technical indicators head firmly south within negative levels, favouring additional declines, mainly on a break below 1.0926, the daily low.

Support levels: 1.0925 1.0880 1.0840

Resistance levels: 1.1010 1.1060 1.1100

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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