The euro continues to fall, although no extremely significant data has been published. In fact, the macroeconomic calendar was completely empty yesterday. So we are seeing a continuation of the trend that began at the end of February, and, apparently, the common currency needs some serious reason to change this trend.
In theory, this could be the reason for the overall economic growth. However, it is with it that certain problems are observed in Europe. The third estimate of the euro area's GDP for the fourth quarter should only confirm the acceleration of the economic downturn from -4.3% to -5.0%. And if we also remember that the United States is slowing down the pace of economic decline, that is, there is an economic recovery, then the decline in interest in the single currency is quite justified. Thus, we are likely to continue to see a gradual decline in the euro.
GDP growth rate (Europe):
The EURUSD pair, in the course of active downward interest, managed to prolong the previously set correction movement, as a result of which the quote updated the current year's local low and headed towards the level of 1.1810.
The market dynamics has a high volatility indicator, which is confirmed by the speculative behavior of traders in the market.
If we proceed from the quote's current location, then we have a local deceleration within the deviation of the level of 1.1810.
Considering the trading chart in general terms, the daily period, it is worth highlighting the full-sized corrective move from the high of the medium-term trend.
We can assume that the 1.1810 level will continue to put pressure on sellers, which may lead to a pullback followed by a slowdown in the form of a horizontal channel at 1.1800/1.1900.
From the point of view of a complex indicator analysis, we see that the indicators of technical instruments on the hourly and daily timeframes signal a sell due to an intensive downward movement in the market. Minute intervals have a variable signal (buy/sell) that is the stage of a rollback-stagnation in the market.
