EURUSD is under selling pressure for one more day testing the 1.10 mark for second day in a row. Weak economic data out of the European Union didn’t help the pair. Confusing signals from Germany economy continues. Earlier today the Germany Gfk Consumer Confidence Survey came in at 9.9 beating forecasts of 9.6 in February. On the other hand the Germany Import Price Index came in at 0.2%, below the forecasts of 0.3% in December. The yearly reading came in at -0.7% also below estimates of -0.6%.
Traders will focus later today on the Feds monetary policy decision. Expectations are for the Fed to keep interest rates unchanged and will look for any revision on the long term outlook.
Read our Best Trading Ideas for 2020.
EURUSD Support and Resistance
EURUSD tested yesterday the 1.10 mark and managed to rebound up 1.1020 Today the sellers make another attempt for a break below the 1.10 mark. The pair started the new year with a correction from the highs at 1.1238. The downtrend channel drives EURUSD to two-month lows with accelerated momentum after the pair break below the 100-day moving average.
Now on the downside, immediate support for EURUSD stands at 1.0994 the daily low. In case EURUSD pair breaks below the bears will seize control of the trend and lower levels might follow. The next support zone stands at 1.1062 the low from October 6th. More offers would emerg at 1.0878 the low from September 29th.
On the other hand, initial resistance for the pair stands at 1.1026 the daily high. A break above that resistance will attract more bids for an attempt to recapture the 100-day moving average at 1.1067. The next supply zone for the EURUSD pair will be met at 1.1093 the 50-day moving average.