Following a dull Asian session, the EUR/USD pair is down to a fresh weekly low around 1.1440, moving inversely to stocks, and equities opened firmer in the region. Dollar's upward corrective move accelerates as the US Nonfarm Payroll report looms, and European data continues to disappoint.
View the Live chart of the EUR/USD
The ECB economic bulletin just released, showed that the Central Bank has acknowledged the moderated growth seen during the first quarter of the year, whilst expressed its concerns over global developments which maintain the risk towards the downside for global activity. France and Germany will remain closed on holidays, which means that movements can be exacerbated due to low volumes.
The US will release its weekly unemployment figures later today, but the focus will be on several FED's speakers that will hit the wires during the American afternoon.
In the meantime, the EUR/USD pair is trading a few pips below Friday's close, with a strong bearish momentum in the 4 hours chart, given that the price has move deeply below a now flat 20 SMA, while the technical indicators head strongly lower within bearish territory. The immediate support comes at 1.1420, but a more relevant one stands at 1.1380, with a break below this last signaling an interim bottom has took place and that the market is willing to keep selling.
A recovery beyond 1.1460/70 on the other hand, should take out some of the bearish pressure, and see the pair recovering up to 1.1530.
Latest updates on the EUR/USD Forecast
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