The bearish note around the single currency remains unchanged so far this week and is now forcing EURUSD to test fresh lows in sub-1.1300 levels. What is next? Gain insight into today's EURUSD technical analysis.
March 6, GKFX – The pair has been losing ground since Friday, coming under renewed selling pressure following new multi-week peaks beyond the key 1.1400 the figure in late last week.
Absent fresh headlines from the US-China trade dispute, uncertainty around the Brexit negotiations and auspicious results from the US docket have all been collaborating with the ongoing retracement in spot.
Moving forward, EUR stays focused on the upcoming ECB meeting (tomorrow), whereas today’s ADP report, the Beige Book and Fed-speakers should keep the attention in the buck.
What to look for around EUR
In line with the broader risk-associated complex, the shared currency continues to look to developments from the US-China trade negotiations for near term direction.
Looking at the broader picture, the ECB is expected to remain in ‘pause mode’ for the foreseeable future amidst the ongoing slowdown in the region, while investors have practically priced out any up move in rates this year. In addition, political headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be whether the populist choice manages to increase its presence in the Old Continent.
EURUSD technical analysis
At the moment, the pair is losing 0.04% at 1.1302 and faces the next support at 1.1289 (low Jan.24) followed by 1.1234 (2019 low Feb.15) and finally 1.1216 (2018 low Nov.12). On the upside, a breakout of 1.3129 (21-day SMA) would target 1.1381 (55-day SMA) en route to 1.1419 (high Feb.28).
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