EUR/USD Current price: 1.0753
Action took place during the first half of the day this Wednesday, as nervous trading dominated the FX board ahead of the Brexit’s trigger, with majors entering in a quiet consolidative stage during the past American session. The EUR/USD pair fell down to 1.0739, its lowest in over a week, and settled around 1.0750, as the ECB’s Government council rushed to warn investors that their easy-money policy is far from ending, concerned over rising yields in the bloc, particularly in the periphery. Is clear that the Central Bank doesn’t want a stronger EUR, although the market has the tendency to ignore central banks’ wishes. The dollar also gained during the Asian and European sessions as stocks surged, following Wall Street’s Tuesday rally, although US equities traded with a softer tone this Wednesday.
There were no major macroeconomic releases in Europe, but further positive housing data came from the US, as Pending Home Sales surge in February, up by 5.5% in the month, more than doubling expectations of a 2.1% advance, leaving the year-on-year reading at 2.6%. This Thursday, the macroeconomic calendar will include sentiment in the EU, preliminary March inflation in Germany, and the final revision of the US Q4 GDP, this last expected unchanged at 1.9%.
The 4 hours chart for the EUR/USD pair shows that the price settled well below the 1.0820 critical region, where the 20 SMA is slowly turning lower. In the same chart, technical indicators have pared loses near oversold readings, but are far from indicating a bounce, all of which maintains the risk towards the downside. Nevertheless, the pair has a strong support around 1.0735, and a stronger one at 1.0700, with a break below this last required to confirm additional declines that can extend down to the 1.0590 during the upcoming sessions.
Support levels: 1.0735 1.0700 1.0660
Resistance levels: 1.0780 1.0825 1.0860