EUR/USD Forecast: further declines below 1.1120

The common currency remains under pressure against the greenback, still trading within a limited intraday range. The EUR/USD advanced during the Asian session up to 1.1178, as local share markets plummeted, tracking Tuesday's decline in oil prices. But European markets opened firmer, and the pair is trading down around 1.1140, still dangerously close to the 1.1120 strong support.

So far, there were no fundamental news released in Europe, and upcoming data, EU Construction Output, will hardly affect the currency. Later on the day, the US will release some housing data and the PPI figures for January, expected to have decreased yearly basis.

View the Live chart of the EUR/USD

Technically, the risk is towards the downside, given that the price has set a lower low daily basis, and in the 4 hours chart, the 20 SMA has extended its decline above the current level, now capping the upside around 1.1180. In the same chart, the technical indicators have resumed their declines within bearish territory, after correcting the oversold conditions reached earlier this week.

A downward acceleration below the mentioned 1.1120 support, should lead to a continued decline down to 1.1080, with a break below this last exposing 1.1045 for this Wednesday. Sellers are aligned between 1.1170 and 1.1210, which means only above this last the upward strength will be sufficient to confirm further gains, towards the 1.1250/60 price zone.

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