EURUSD Declines After Negative Stats

The US Dollar continues its strengthening against the common European currency amid weaker-than-expected economic reports from the eurozone in general and France in particular. Earlier today, EURUSD traded around the bottom of the 1.3748-1.3875 price range.

After the negative economic report from France, the currency pair went down, thereby allowing the US Dollar index to gain some strength against other major currencies.

One of the key events planned for the near future is another ECB meeting. The results of this event will definitely have a major impact on the future price move in the market of EURUSD. Apparently, the index will also be influenced by it. The meeting is sheduled for April 3^rd.

Another major event to drive the market will be the eurozone’s inflation report. It is scheduled for March 31^st. Therefore, the currency market is not going to be to volatile until then, especially as the Forex trading week is almost over.

According to the technical analysis of EURUSD conducted by Masterforex-V Academy, the H4 chart indicates that the common European currency is weakening.

A couple of days ago, the experts told us that EURUSD would have to break and consolidate below the 1.3748-1.3875 price area in order to continue the downward momentum. This is what happened this morning on negative news.

At this point the currency pair is testing the MF pivot located at 1.3719. In order to continue the downswing, EURUSD will have to break below the mentioned pivot and to consolidate below it by making a new local low below the pivot and than breaking below it.

The current levels of support are represented by the 1.3644(72) price area where there is a cluster of support levels and the bottom of the long-term MF sloping channel. If the price manages to break and consolidate below the are, we may well expect a further decline down to 1.3485.

Alternatively, the current level of resistance is located at 1.3748. If the price somehow manages to break above this level, it is very likely to encounter resistance at the MF pivot located at 1.3847.