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EUR/USD Forecast: Hovers Near Daily Lows, Maintaining Its Bearish Stance In The Near-Term

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EUR/USD Forecast: Hovers Near Daily Lows, Maintaining Its Bearish Stance In The Near-Term

EUR/USD Current Price: 1.1853

  • US Treasury yields flirted with one-year highs as investors welcomed stimulus news.
  • The focus shifts to US House voting on US President Joe Biden’s stimulus bill.
  • EUR/USD hovers near daily lows, maintaining its bearish stance in the near-term.

The EUR/USD pair fell to a fresh 2021 low of 1.1845 this Monday, as the greenback once again got a boost from US government bond yields. Treasuries fell, and yields flirted with one-year highs ahead of Wall Street’s opening, losing steam in the American session but holding on to daily gains. Investors cheered weekend ends indicating that the US Senate passed the stimulus bill, which has returned to the House amid some changes introduced by the upper house.

Germany published January Industrial Production, which fell 2-5% MoM, missing the market’s forecast. The annual reading met expectations by printing at 3.6%. The EU Sentix Investor Confidence improved to 5 in March from -0.2 previously, well above expected. The US calendar unveiled January Wholesales Inventories, which came in as expected at 1.3%.

This Tuesday, the US House is expected to vote on President Joe Biden’s bill on coronavirus aid. Germany will publish its January Tra5de Balance, while the EU will release the final reading of its Q4 GDP, foreseen unchanged at -0.6% QoQ.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is trading in the 1.1850 price zone, below the 61.8% retracement of its November/January rally at 1.1885. An attempt to recover during US trading hours met sellers around this last, increasing the odds for a bearish continuation in the upcoming sessions. In the near-term, and according to the 4-hour chart, the risk is skewed to the downside, with the 20 SMA heading lower almost vertically above the current levels and technical indicators consolidating within oversold levels.

Support levels: 1.1840 1.1790 1.1750

Resistance levels: 1.1885 1.1920 1.1970  

View Live Chart for the EUR/USD

 

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Posted-In: EUR/USD FXStreetNews Eurozone Forex Global Markets

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