EUR/USD Forecast: Outlook Tilted Toward Extension Of The Bearish Slide

The EUR/USD pair struggled for a firm direction and has been oscillating in a very tight range over the past 24-hours, amid increasing nervousness over the US tax reforms plan. Uncertainty surrounding the Republican-led tax-cut legislation crept up after the Washington Post reported on Tuesday that Senate Republicans were considering to delay the corporate tax cut, as against the US President Donald Trump's intention to implement immediately once passed. The tax bill text is slated to be revealed on Thursday and would be a key event risk to watch for.

The ECB economic bulletin and the latest EU economic forecasts are due to be released on Thursday, which along with the usual weekly initial jobless claims data from the US would be looked upon for some trading impetus.

Meanwhile, the macro picture remains tilted to the downside amid divergent monetary policy outlooks between the Fed and the ECB. Even from a technical perspective, any attempted recovery moves could confront immediate resistance near the 1.1615 horizontal zone. Momentum above the mentioned hurdle could see an additional recovery but is more likely to be capped around the 1.1665-70 supply zone.

Conversely, a break below the 1.1580-75 zone would point to a resumption of the downtrend and should accelerate the slide towards 1.1555-50 intermediate support en-route to the key 1.15 psychological mark, which could further get extended towards the next major support near mid-1.1400s, marking the 100% Fibonacci expansion level of 1.2092-1.1669 downfall and subsequent rebound.