The common currency eases this Monday, after failing to sustain gains above the 1.1000 figure against the greenback. Stock trade generally lower in Asia and Europe, despite Chinese authorities announced they will focus on reactivate growth this year, as over the weekend, growth target was revised lower to a range of 6.5% to 7% from previous 7%. In Europe, Germany Factory Orders for January decreased by 0.1%, less than the 0.5% expected, but the second consecutive monthly decline, indicating economic slowdown is finally extending its claws over the largest EU economy.
View the Live chart of the EUR/USD
Trading around 1.0950, the pair is expected to trade range bound ahead of the ECB economic policy meeting this Thursday. In the 4 hours chart, the downside potential seems limited at the time being, as the pair is stick around the 23.6% retracement of its latest daily slump, and above a bullish 20 SMA, currently around 1.0930, the immediate support, while the technical indicators have turned south from overbought levels, but remain within positive territory.
A downward acceleration through 1.0930 could see the pair extending its decline down to 1.0880, while below this last, the next support comes at 1.0840, although buying interest is expected to surge around this last. The immediate resistance is at 1.1000, with a break above it required to see the pair retesting Friday's high around 1.1045.
Latest updates on the EUR/USD Forecast
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