EUR/USD Price Forecast: Bears maintain the pressure despite market’s mood

EUR/USD Current price: 1.0911

• The German ZEW Survey showed an unexpected improvement in Economic Sentiment.
• Wall Street struggles in the near term, but US indexes continue to post record highs.
• EUR/USD keeps posting lower lows, in line with the dominant bearish trend.

The EUR/USD pair fell battles to retain the 1.0900 mark on Tuesday after falling to a fresh two-month low of 1.0884. The US Dollar (USD) remained bid through the Asian session, but lost some ground after European trades reached their desks.

In the meantime, the Euro found near-term support in local data, as the German ZEW Survey showed that Economic Sentiment improved in the country and the Eurozone in October. The German index printed at 13.1, while the EU hit 20.1, much better than anticipated. However, the assessment of the current situation in the country contracted to -86.9 from -84.5 in September.

A better market mood also undermines demand for the USD. Wall Street rallied on Monday amid solid gains in the tech sector, pushing Asian and European indexes up throughout the first half of the day.  However, easing oil prices weighs energy shares, putting mild pressure on European equities and United States (US) futures.

Ahead of the American opening, the US released the NY Empire State Manufacturing Index, which unexpectedly fell to -11.9 in October after rising by 11.5 in the previous month. Different Federal Reserve (Fed) officials will be on the wires later in the day.

EUR/USD short-term technical outlook  

From a technical point of view, the EUR/USD pair is still poised to extend its slide. The daily chart shows it is trading around its opening but also that it posted a lower low and a lower high. Even further, EUR/USD develops below an almost flat 100 Simple Moving Average (SMA), providing dynamic resistance at around 1.0945. The 20 SMA, in the meantime, keeps gaining downward traction above the longer one, in line with persistent selling interest. Finally, technical indicators stand near oversold readings, without clear directional strength, but also without signs of downward exhaustion.

In the near term, and according to the 4-hour chart, EUR/USD is on its way to extending its slide. A bearish 20 SMA keeps rejecting buyers, while the 100 SMA accelerates below a bearish 200 SMA far above the current level. Technical indicators, in the meantime, consolidate within negative levels, failing to provide clear directional clues but still skewing the risk to the downside.

Support levels: 1.0885 1.0840 1.0805

Resistance levels: 1.0935 1.0970 1.1010