EURUSD stays under selling pressure at 1.0467 as the USD strengthens.
During the early European trading hours on Wednesday, the EURUSD pair remained on the defensive above the mid 1.0400s. The major currency pair has recovered from its year-to-date (YTD) low of 1.0448 and is presently trading at 1.0467, up 0.01% on the day.
Market participants are looking for new impetus from the Eurozone Producer Price Index (PPI) and Retail Sales. In addition, President Lagarde of the European Central Bank (ECB) will deliver a lecture on Wednesday. The Annual Eurozone Retail Sales are predicted to decline 1.2% in August, following a 1% dip in July.
EURUSD Technical Outlook
Technically, the EURUSD pair is trading below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the four-hour chart, indicating that the pair’s path of least resistance is to the downside. Furthermore, the Relative Strength Index (RSI) remains below 50, favoring sellers for the time being.
However, the main support level for the EURUSD pair is identified between 1.0400-1.0410, which represents the lower limit of the Bollinger Band as well as a psychological round mark. The next point to watch is at the September 25 low of 1.0355. The next station is further south. The main pair is spotted at 1.0320 (a November 29 low).
On the upside, the main pair’s initial resistance barrier is at the 50-hour EMA at 1.0550. The extra upward filter will appear at the upper Bollinger Band border at 1.0609, followed by 1.0624 (the 100-hour EMA). Any more purchasing over the latter will result in a rebound to 1.0670 (a September 22 high), followed by a psychological figure at 1.0700.
