- EUR/USD remains sidelined after posting the biggest daily slump in six weeks.
- 50-SMA, 100-SMA restrict immediate Euro moves while defending buyers past one-month-old ascending support line.
- Downbeat oscillators, failure to pick-up bids keep EUR/USD bears hopeful.
- US Durable Goods Orders for March will provide early signals for the key US Q1 GDP.
EUR/USD treads water around 1.0980 heading into Wednesday’s European session as bears take a breather after posting the biggest daily loss in 1.5 months. Also challenging the Euro pair’s latest moves could be the cautious mood ahead of the US Durable Goods Orders for March, expected to improve to 0.8% versus -1.0% prior.
Also read: EUR/USD licks its wounds near 1.0970 after banking woes propelled the biggest daily fall in six weeks
Apart from an immediate challenge to the EUR/USD pair’s momentum caused by the 50-SMA and the 100-SMA, an upward-sloping support line from late March, also restrict the quote’s nearby moves by offering a strong support around 1.0955.
It’s worth noting, however, that the quote’s hesitance in accepting bids joins the bearish MACD signals and a mostly steady RSI (14) keeps the EUR/USD sellers hopeful.
However, a clear downside break of the 1.0955 support confluence, encompassing the 100-SMA and the aforementioned trend line, becomes necessary to convince the Euro sellers.
Even so, the 200-SMA level of 1.0865 can act as the last defense of the EUR/USD buyers.
On the contrary, an upside break of the 50-SMA hurdle of 1.0980 will need validation from the 1.1000 psychological magnet to convince the Euro bulls.
Following that, a descending resistance line from mid-April, close to 1.1065 at the latest, will be crucial for the EUR/USD pair to cross to keep the bulls on board.
EUR/USD: Four-hour chart
Trend: Downside expected
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