Stocks plummeted with the European opening, partially due to yesterday's comments coming from FED's officers opening doors for an April rate hike in the US, but also on the back of risk aversion, after a series of terrorist attacks in Brussels' airport and metro stations. The greenback is higher against all of its major rivals but the safe-haven yen, with markets trading almost in panic mode.
Data coming from Europe was quite positive, with local PMIs generally higher and above expectations. Only the German manufacturing sector shrunk during March, with the Markit Manufacturing PMI printing 50.4 against previous 50.5. The EU manufacturing sectors grew as expected, with the index resulting at 51.4, while the services sector remains the strongest, up to 54 from previous 53.3. The German IFO survey shows an unexpected increase in local confidence, as expectations reached 100 against a previously revised 98.9.
View the Live chart of the EUR/USD
The EUR/USD pair however, trades around 1.1200, having been as low as 1.1187 so far today and with a strong bearish momentum coming from technical readings, given that in the 4 hours chart the price has accelerated its decline below a now flat 20 SMA, whilst the technical indicators head sharply lower below their mid-lines.
The immediate support comes at 1.1160, with a break below it required to confirm a continued decline down to the 1.1100/20 region. The downward risk will prevail as long as the price remains below the 1.1245 level, as only a recovery above it will signal additional gains, towards the 1.1280/1.1300 region.
Latest updates on the EUR/USD Forecast
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