FX.co ★ EUR/USD

The Euro/dollar pair retained its prominence, with traders closely monitoring its movements. Oscillating around the 1.0788 mark, the pair exhibited a cautious demeanor, endeavoring to reclaim lost ground from the preceding session. Despite its efforts, obstacles loom large as it seeks to bounce back from recent declines, with a keen focus directed toward the critical barrier at 1.0800. Fundamentals of the EUR/USD: Recent remarks from critical figures within central banks have injected a dose of uncertainty into the forex arena. ECB Vice-President Luis de Guindos acknowledged the prevailing downside risks concerning inflation. However, he emphasized the ECB's commitment to crafting policies in alignment with the available data. Meanwhile, all eyes are on Fed Chairman Jerome Powell, who is poised to deliver pivotal language on Wednesday. Speculation mounts regarding the synchronization between his words and the prevalent money market speculations, hinting at a looming benchmark rate cut by May. Four-hour Time Frame Technical Outlook: The EUR/USD pair encounters a battleground of psychological and technical barriers. Immediate support rests at the psychological threshold of 1.0700, bolstered by the monthly low at 1.0695. A decisive breach beneath this floor could reinforce bearish sentiments, guiding the pair toward the significant support zone near the 1.0732 mark. Conversely, a breakthrough above this barrier could propel the pair's trajectory toward the 23.6% Fibonacci retracement level at 1.0888, accompanied by the 14-day Exponential Moving Average (EMA) residing at 1.0876. Should the bulls conquer this resistance zone, the EUR/USD pair may set its sights on exploring the vicinity of the psychological stronghold at 1.0900.

Technical indicators underscore prevailing market dynamics, with the 14-day Relative Strength Index (RSI) signaling bearish momentum below the 50 mark. Moreover, the Moving Average Convergence Divergence (MACD) indicates a potential confirmation of a downward trend, with the MACD line positioned below both the center and signal lines.