In this EURUSD analysis, the euro continues to edge lower against the US dollar on the last trading day of the week, with the pair failing towards the neckline of a bearish head shoulders pattern on the daily time frame.
March 29, OctaFX – The euro continued to decline against the USD ahead of key economic data from Europe. In Germany, the unemployment rate is expected to decline to 4.9% from the previous 5.0%. The unemployment change is expected to drop by 10K. In Italy, the CPI is expected to remain unchanged at 1.0% while that of the European Union is expected to remain at 1.5%.
In recent days, the euro has weakened significantly against the USD as traders continue to worry about economic growth. Meanwhile, the market will receive the GDP numbers from Canada. The economy is expected to have grown by 1.5%, which is slightly higher than the previous 1.1%. From the US, traders will receive consumer sentiment numbers and new home sales.
EURUSD technical analysis
The EURUSD pair declined to a low of 1.1210. This was the lowest level since March 8. On the 4-hour chart, the price is below the 25-day and 50-day moving averages. It is also along the lower line of the Bollinger Bands.
The On Balance Volume indicator too has continued to decline while the RSI has remained close to the oversold level. Today, the pair could continue moving lower as it attempts to move below 1.1200.
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