The EUR/USD pair retreated from the high set at 1.0967 during the past Asian session, as the dollar appreciated on the back of the surprise shock coming from the BOJ. Governor Kuroda decided to cut the main benchmark rate into negative territory, joining in full-mode the currencies war. The pair, however, has found support so far around the 1.0880 level and hovers around the 1.0900 level.
The EU will release its January inflation data, expected to have tick slightly higher, and maybe supportive for the common currency. But the focus will remain in the US Q4 Advance GDP release later today, expected at 0.8%. Is well below the third quarter reading, but Mrs. Yellen already acknowledged slow growth by the end of the year, meaning that should not surprise markets, unless the reading is worse than actually expected.
View the Live chart of the EUR/USD
The EUR/USD pair 4 hours chart shows that the price is holding above its 20 SMA after failing to break above the daily descendant trend line coming from December high, whilst the technical indicators have turned south, but remain above their mid-lines. The bearish potential should increase on a downward acceleration below the mentioned 1.0880, with the next supports at 1.0845 and 1.0800.
A recovery above 1.0925 on the other hand, can see the pair retesting the highs in the 1.0960/70 region, and even approach to the 1.1000 figure, where selling interest is expected to contain rallies.
Latest updates on the EUR/USD Forecast
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