Despite sentiment and therefore stocks are quieter this Thursday, the greenback retains its positive tone, particularly against its European rivals. The EUR/USD pair continues sliding, and traded as low as 1.1233 ahead of the release of EU inflation, which resulted better-than-expected: in March, inflation rose by 1.2% compared to the previous month, whilst resulting flat year over year, against a 0.1% drop initially reported.
View the Live chart of the EUR/USD
The common currency posted a modest bounce from the mentioned low, but mostly due to the soft tone in local share markets. The US will release its own March inflation data later on the day, alongside with the latest weekly unemployment claims figures. Inflation in the US, is expected slightly above previous reading, but nothing really significant.
In the meantime, the 4 hours chart shows that the EUR/USD pair remains within its daily lows, with the technical indicators flat around oversold levels, and the 20 SMA accelerating its decline above the current level, all of which indicating that the pair may resume its decline after some consolidation.
Below 1.1200, the next support comes at 1.1160, followed by 1.1120, both strong static levels. Should the price extend below this last, quite unlikely for today, a bearish continuation towards 1.1000 could be expected for the upcoming week. The immediate resistance stands at 1.1280, with an upward acceleration above it signaling a retest of 1.1330, the base of the previous two-weeks range. Further gains beyond this last, will likely extend up to the 1.1370/80 region.
Latest updates on the EUR/USD Forecast
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