The common currency retains a weak tone this Tuesday, trading against the greenback around its recent lows below the 1.0900 figure. Data coming from Europe was mixed, with German figures being the most encouraging: German joblessness fell for a fifth month in February, down by 10K, not enough to change the unemployment rate that remained steady at 6.2%. The Markit Manufacturing PMI for the country came in at 50.5, slightly above expected, while the EU reading fell to a 12-mont low in February of 51.2 against previous 52.3. The rest of the major European economies however, printed readings below expectations.
View the Live chart of the EUR/USD
The EUR/USD pair has been trading in quite a limited range ever since the day started, meeting selling interest on advances up to 1.0893 the 100 DMA. Shorter term, the 4 hours chart shows that the 20 SMA has accelerated its decline well above the current level, now offering a strong dynamic resistance around 1.0960, while the technical indicators consolidate near oversold readings.
The pair has met some short term buying interest around the 1.0850 region, which means a break below it could lead to additional declines towards the 1.0800/10 price zone. Buyers have surged around this last multiple times over the last few months, making of it a key level, as a clear break below it should lead to a sharper decline all through the upcoming sessions.
Above the mentioned daily high on the other hand, the pair can correct up to 1.0960, but further gains seem unlikely for today.
Latest updates on the EUR/USD Forecast
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