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EUR/USD Outlook: Single Currency Remains on the Backfoot As 1.19 Beckons

The EUR/USD remains on the back foot after a pair of divergent data hit the newswires. The European Monetary Union’s Industrial Production showed an expansion of 0.85% MoM, with an annualized rise of 0.1%. 

Even though these numbers beat the market’s expectations, data from the US side of things was good enough to overwhelm the Eurozone data. Apart from the nearly 4% rise in the 10-year bond yield, US Producer Prices rose by 0.5% month-on-month in February, beating the market’s expectation by a single basis point to establish renewed demand for the greenback. 

Price action around the EUR/USD continues to be dominated primarily by the developments around the US Dollar.

Technical Outlook for EUR/USD

The pair has resumed the downside move following today’s divergent data for the two currencies in the pairing. The active candle has violated the 1.19472 support level, putting 1.18927 in the horizon as the next target to the south. Bears would need to see a closing penetration below the lows of 9/10 March to see a possible run of price towards 1.18008. 

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On the other hand, failure to sustain the violation below 1.19472 could allow bulls back into the picture. However, they would need to force prices above 1.19999 to see a possible run towards 1.20549. 1.20890 and 1.21792 remain potential upside targets that would need a fundamental shift in the current US bond yield situation. 

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EUR/USD Daily Chart

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