EUR/USD struggles to extend the corrective pullback towards 1.1600, as the US dollar rebounds amid worsening mood. Mixed concerns relating to Fed tapering, US-China, and soaring energy costs dent risk appetite. Light trading can restrict intraday moves, as all eyes remain on Wednesday's US inflation and FOMC minutes.
At the moment of writing, the EUR/USD pair currently was trading in the 1.1560 price zone, retaining its intrinsically bearish stance. It consolidated near its 2021 low at 1.1528. The 4-hour chart showed that the price was hovering around a mildly bearish 20 SMA, while the longer moving averages maintained their firmly bearish slopes well above the current level.
At the same time, technical indicators have turned lower, with the Momentum consolidating around its midline and the RSI heading south at around 44, indicating prevalent selling interest. It seems unlikely that the pair will break lower in such a quiet day, although risk-related headlines may spur some action, exacerbated by the low volumes.
Support levels: 1.1520 1.1475 1.1440
Resistance levels: 1.1580 1.1640 1.1685
