EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
- German Factory Orders: Monday, 6:00. Factory orders jumped 5.5% in January, after three straight declines. This reading easily beat the estimate of 1.5%. Analysts are braced for a decline of 2.7% in February.
- Eurozone Sentix Investor Confidence: Monday, 8:30. Investor confidence plunged in March, dropping to -17.1 points. This missed the estimate of -11.0 and was down from 5.2 points in February.
- German Industrial Production: Tuesday, 6:00. The indicator accelerated to 3.0% in January, up from -3.5% a month earlier. This reading was well above the forecast of 1.7%. The estimate for February stands at -0.7%.
- German Trade Balance: Thursday, 6:00. Germany continues to record trade surpluses every month. In January, the surplus narrowed to EUR 18.5 billion, down from 19.2 billion a month earlier. The surplus is expected to climb to EUR 20.3 billion in February.
- ECB Monetary Policy Meeting Accounts: Thursday, 11:30. At the March 12 meeting, the ECB opted not to follow the Federal Reserve and Bank of England and did not lower its main deposit rate, which is at -0.5%. The bank also expanded its asset purchase program by 120 billion euros. Investors will be keen to read the details of the meeting provided by the minutes.
EUR/USD Technical analysis
Technical lines from top to bottom:
We start with resistance at 1.1119.
1.1025 (mentioned last week) is next.
1.0900 switched to resistance as EUR/USD broke below this line late in the week.
1.0829 is an immediate resistance line.
The round number of 1.07 is next.
1.0620 is protecting the 1.06 level.
1.05 is the final support level for now.
I remain bearish on EUR/USD
In the present financial crisis, the dollar remains the currency of choice for nervous investors. The eurozone economy was sluggish before the CORVID-19 outbreak, and economic conditions have only worsened, with Italy and Spain especially hard hit by the virus.