EURUSD makes fresh three-week highs as investors increase bets that the Fed will proceed with a 25 basis point interest rate cut in the upcoming policy meeting due to the coronavirus outbreak.
On the European economic data front France reported a 1.1% drop in January household consumption below the market expectations of 0.1%. The Gross Domestic Product came in at -0.1% in line with forecasts for the fourth quarter. German unemployment queues drop by 10,000 in February, while analysts expected almost a 5,000 increase, that was the third decline in four months. The Germany Unemployment Rate came in at 5% in line with expectations in February.
EURUSD is 0.05% lower at 1.1005 retreating from the three-week highs, after the pair hit the 100-day moving average. EURUSD started the day stronger and managed to break above the 50-day moving average. That was the signal for more bids that send the price up to daily highs at 1.1052. The technical outlook has improved today but we have to wait to see if the pair will regain the 50-day moving average.
On the upside, immediate resistance for the EURUSD pair stands at 1.1052 the 100-day moving average and daily top. A break above might target at 1.1092 the high from February 3rd. More selling pressure would be met at 1.1098 the 200-day moving average.
On the flip side, initial support stands at 1.10 psychological mark and then at 1.0981 the daily low. If the pair breaks below the next target would be the 1.0874 the low from yesterday’s trading session. Next support will be met at 1.0854 the low from February 26th.