The three-day losing streak in the EUR/USD pair appears to have come to a halt around the 50-DMA level of 1.0674 this Friday morning. The pair failed to hold above the 200-DMA level earlier this week.

ECB Taper/rate hike is still a distant dream…

Euro bulls got a wakeup call earlier this week after reports hit the wires earlier this week that the ECB policy makers are reluctant to make any changes to the bank’s policy statement in April and feel the markets misread the ECB’s message in March from beginning to price in a rate hike by later this year.

This triggered a sell-off in the EUR/USD pair from the high of 1.0906 to 1.0672. The EUR is likely to stay on weaker footing as the market scale back their expectations of a rate hike ahead of the April meeting.

Reflation trade revival

The US Q4 GDP was revised higher to 2.1% from the preliminary estimate of 1.9%. Meanwhile, personal spending was revised higher to 3.5% and that seems to have triggered a revival of the Trumpflation/Reflation trade.

Overall, the EUR/USD looks set to take out the 50-DMA support… especially if US personal spending due later today prints higher than expected. The 10-year treasury yield could break above 2.43% on strong data, leading to a broad based USD rally.

EUR/USD Technical Levels

A break below 1.0674 (50-DMA) would expose the downward sloping 100-DMA seen at 1.0632, under which the losses could be extended to 1.06 (zero figure). On the other hand, a break above 1.0706 (Mar 16 low) would open doors for a re-test of 1.0759 (5-DMA) and 1.0772 (10-DMA).

15M Bearish Neutral High
1H Strongly Bearish Oversold Expanding
4H Bearish Oversold Shrinking
1D Bearish Neutral Low
1W Bearish Neutral Low


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD losses momentum and trades around 0.6950

AUD/USD losses momentum and trades around 0.6950

AUD/USD eased in the American session to settle at the lower end of its Tuesday range. Lingering Chinese and US inflation figures sent investors to the sidelines. Eyes on equities and government bond yields.


EURUSD returns 1.0200 as the market mood sours

EURUSD returns 1.0200 as the market mood sours

The EUR/USD pair is battling to hold above the 1.0200 mark, undermined by a souring market mood. The European energy crisis adds to the poor performance of the shared currency.


Gold bulls to challenge $1,800 ahead of US inflation figures

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold kept rallying on Tuesday, hitting a fresh one-month high. The greenback remained weak throughout the first half of the day, recovering some ground after Wall Street’s opening amid the poor tone of US indexes.

Gold News

Iran adopts crypto in foreign trade, debuts with $10 million import order

Iran adopts crypto in foreign trade, debuts with $10 million import order

In a watershed moment for crypto adoption, Iran registered its first official order for importing $10M worth of goods paid for in cryptocurrencies. A private Iranian news agency reported that the Ministry of Industry, Mine and Trade has plans to widely use cryptos in foreign trade.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!