Search ForexCrunch
  • The dollar gathered momentum by the end of the US session.
  • The Euro continues underperforming on concerns related to economic growth in the Union.

The EUR/USD pair accelerated its slide by the end of the day, now trading at fresh weekly lows in the 1.1260 area, its lowest since March 12th. The poor performance of the shared currency is highly correlated to mounting fears of a local economic downturn, exacerbated lately by disappointing German macroeconomic data. Even the sightless report spooks investors, as this Tuesday, the only figure released was the GFK Consumer Confidence Survey for April, which came in at 10.4 while March reading was downwardly revised to 10.7 from 10.8. Even further, US latest data failed to impress, to say the least, with mixed housing figures and signs of slowing manufacturing according to another regional report, the  Richmond Fed Manufacturing Index that printed 10 in March, down from the previous 16.

 The pair is now trading below the  61.8% retracement of the latest bullish rally between 1.1175 an 1.1447, at around 1.1280, and according to Valeria Bednarik, the short-term bearish stance is clear, as, “in the 4 hours chart, the pair is now developing below all of its moving averages, with the 20 SMA crossing below the larger ones, all of them around the 50% retracement of the same rally. Technical indicators in the mentioned chart remain within negative territory, with the Momentum losing downward strength after an upward corrective movement than anyway stalled below its 100 line while the RSI grinds lower, currently at 37. Further declines toward the yearly low at 1.1175 seem likely for the upcoming sessions, particularly if the greenback becomes more attractive for speculators.”

She mentions supports coming at 1.1265, 1.1220, and 1.1175, and resistances at 1.1320, 1.1350, and 1.1390.