The EUR/USD pair trades uneventfully near its recent lows, as investors wait for some further clarity coming from both Central Banks during the upcoming weeks. Despite risk sentiment continued to improve in Asia, the common currency remains subdued, weighed by a series of negative readings. Later on today, the EU will release its PPI figures for January, expected slightly better than December ones, but still negative. But the focus will be the US ADP survey ahead of the US opening, expected to show that the private sector created 190K new jobs in February, against the 205K added in January.
View the Live chart of the EUR/USD
According to the 4 hours chart, selling interest continues aligned in the 1.0880/90 region, and the overall tone is bearish, as the price fell further below its moving averages, whilst the 20 SMA has accelerated its decline and now hovers around 1.0900. In the same chart, the technical indicators stand flat within negative territory, showing no actual directional strength, but maintaining the risk towards the downside.
As commented on previous updates, the pair has a major support in the 1.0800/10 level, where buying interest has surged several times since early December. The pair seems poised to test the region, although it will take a downside acceleration through the level to confirm a more steady decline, with the next short term supports at 1.0770 and 1.0735.
A recovery above 1.0900 on the other hand, should see the pair advancing up to 1.0960. If this level holds, will likely see the bearish trend resuming, as it would be a mere correction. But above it, the upside will look more constructive, with 1.1000 and 1.1045 as the next resistance levels.
Latest updates on the EUR/USD Forecast
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