The EUR/USD pair consolidates in a limited range this Wednesday, hovering between 1.1348, the low posted in the European session, and 1.1384, the high posted late US and ahead of the daily opening.
View the Live chart of the EUR/USD
Data coming from the EU was again a disappointment, as the German Producer Price index plummeted 3.1% in March, compared to a year before, and came in flat compared to February. Poor inflation in the region, however, is far from being a surprise, and therefore did little for the pair. Later on today, the US will release the latest existing home sales data, which will probably disappoint, as the sector has been far from growing ever since late 2015.
From a technical point of view, the 4 hours chart shows that the price remains above a bullish 20 SMA, whilst the technical indicators head slightly higher after a limited correction from overbought territory, limiting chances of a stronger decline, as long as the price holds above 1.1315, the 23.6% retracement of the latest bullish run.
Above yesterday's high, the pair can resume its advance and quickly run to 1.1420, whilst above this last, the rally can extend up to 1.1460, the major resistance level that contained the pair since early January. The pair needs to break below the mentioned Fibonacci support on the other hand, to gain a bearish intraday tone, with the next supports/targets at 1.1270 and 1.1220, this last the 38.2% retracement of the mentioned rally.
Latest updates on the EUR/USD Forecast
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