Thursday, April 25, 2019

EUR/USD - 25 April 2019


Fundamental Highlights

The Euro extended its losses to new yearly low yesterday as German Business sentiment continued deteriorating in April, after the Business Climate Index fell to 99.2 from 99.6 in March. This led the yield on the 10-year government bond to fall below 0.0% for the first time since 2016, driving traders away from the common currency. In economic news, today the US will release its much anticipated Durable Goods Orders. A better than expected numbers could add even more pressure on the single currency.

Technical Analysis

The Euro printed a new yearly low, 1.1141 (S1), after price broke below key support level 1.1185 (R1), while the 50/200 day moving averages crossing over signaling the 'death cross'. A retest of 1.1185 (R1) is very likely now to see how the market would react towards it. If it acts as a new resistance, then that could potentially confirm more downside exposure for the single currency. If, however, the bulls would break above it, then this downside risk on the Euro could pause temporarily.

Support: 1.1141 / 1.1115 / 1.1050
Resistance: 1.1185 / 1.1230

Chart (H4)