The EUR/USD is under intense pressure ahead of the important EU CPI and German unemployment rate data. The EURUSD price has dropped to 1.2020, which is the lowest it has been since February 8.
What happened: There will be no major economic releases from the United States today. Instead, investors will focus on the preliminary consumer price index (CPI) data from the European Union. Economists polled by Reuters expect the data to show that the headline CPI increased by 0.9% in February. The HICP ex-energy and food prices increased by 1.1%.
Meanwhile, the EUR/USD price will also react to the German employment numbers. The data is expected to show that the unemployment rate dropped from 6.0% to 5.9%. They also expect the German economy to have shed more than 13,000 jobs in February as a new wave of the virus emerged. These numbers will come a day after the relatively strong Eurozone’s manufacturing PMI data.
EUR/USD technical outlook
The four-hour chart shows that the EUR/USD pair has dropped sharply in the past few hours. It has also moved below the important support at 1.2023 and the 25-day and 15-day weighted moving averages. The RSI has also been dropping. Therefore, the pair may continue to decline as bears target the next support at 1.2000. However, a move above 1.2050 will invalidate this price action.