EURUSD retreat today from two-week highs amid USD strength across the board today. Last week EURUSD run an impressive rebound from multi-year lows at 1.0631 after central banks and Fed announced new aggressive monetary measures to enhance USD liquidity across the globe. Federal Reserve will buy mortgage-backed securities and Treasuries. Also, Fed has relaunched TALF to support the consumer and business debt and will set two facilities to support the corporate debt markets. On Friday, Congress signed the relief package bill that includes direct payments to households.
On the economic data from the other side of the Atlantic, the European Monetary Union Industrial Confidence came in at -10.8, topping the forecasts of -12.7 in March. The Consumer Confidence came in at -11.6 in line with estimates. The Economic Sentiment Indicator came in at 94.5, above the forecasts of 93 in March. And finally, the European Monetary Union Services Sentiment came in at -2.2 topping the expectations of -3.
Read our Best Trading Ideas for 2020.
EURUSD Technical Analysis
EURUSD is 0.54 lower at 1.070 as the pair corrects from two week highs as the risk-off sentiment returns to markets today. The intraday correction stall for now at the 50-day moving average at 1.1075. The technical picture will remain bullish if the pair manages to setlle above the 50-day moving average today.
On the downside, first support for the pair stands at 1.1060 daily lows. Next support level would be met at 1.1050 the 100-day moving average. If the pair breaks that support then the next support stands at 1.0997 the 200-day moving average.
On the flip side, first resistance for the pair stands at 1.1144 the daily high. If the pair brrreaks that resistance then the next target is at 1.1192 the high from March 17th. The next hurdle for the EURUSD pair is at 1.1237 the high from March 16th session.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.