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EUR/USD Forecast: Post Third Decline In A Row, The Lowest Close Since November

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EUR/USD Forecast: Post Third Decline In A Row, The Lowest Close Since November

EUR/USD Current Price: 1.1779

  • Euro among worst G10 performers on Thursday as EU leaders discuss the vaccine.
  • US dollar losses strength as Wall Street turns positive.
  • EUR/USD post third decline in a row, the lowest close since November.

The EUR/USD pair fell for the third consecutive day on Thursday and hit a fresh 2021 low of 1.1761, as the Euro underperformed, particularly during the American session. An improvement in market sentiment during US hours weakened the greenback and favored a rebound of the euro. The pair trimmed losses, but it was holding under 1.1800.US economic data came in above expectation, with initial and continuing claims dropping to one-year lows and a positive revision to Q4 GDP numbers from 4.1% to 4.3% (annualized). US equity markets opened lower and tumbled but then recover. The Dow Jones bounced 500 points from the lows. The improvement in risk sentiment weakened the US dollar and did something for the euro.

The common currency was the worst performer among the G10 group, probably affected by technical factors and the big decline versus the pound. European leads are meeting virtually to discuss vaccine supplies and improving distribution. On Friday, data to be released include the German IFO and in the US, personal income, and spending data.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is consolidating below the 200 DMA, for the second day in a  row. The euro hit a new low at 1.1759. The area around 1.1750/60 is a strong support that could help the euro alleviate the bearish pressure. Still, no signs of a correction are seen. .According to the 4-hour chart, the risk is skewed to the downside. Still, with RSI and Momentum and extreme oversold levels attempting to flatten, some consolidation seems likely ahead of the Asian session. A break under 1.1750 would leave the euro more vulnerable.

Support levels: 1.1750 1.1710 1.1685

Resistance levels: 1.1800 1.1835 1.1885

 

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Posted-In: FXStreetNews Eurozone Forex Global Markets

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