Yesterday, the Euro was not able to get stronger growth, despite retail sales in Germany, which declined less than expected in March (-0.2% versus -0.4%). In a separate report on Germany’s manufacturing PMI, the indicator in April dropped below the first value of 44.5. The index of business activity in the manufacturing sector of the Eurozone, however, showed a slight improvement, amounting to 47.9 against the expectations of the indicator of 47.8. The market looks as if it is ready to reverse again because the Euro failed to test serious resistance. It seems that the US Dollar continues to strengthen against all currencies.
EUR/USD technical analysis
The Euro failed to retain gains above the 1.1250 level and declined recently against the US Dollar. The EUR/USD pair traded below the 1.1225 and 1.1200 support levels to move into a bearish zone.
The pair even broke the 1.1180 support and settled below the 50 hourly simple moving average. A swing low was formed at 1.1170 and the pair is currently consolidating losses below the 1.1180 and 1.1200 resistance levels.
To start a decent upward move, the pair must surpass the 1.1200 resistance and the 38.2% Fib retracement level of the last decline from the 1.1218 high to 1.1170 low.
If the pair fails to settle back above 1.1200, there is a risk of an extended decline in the near term. Immediate support is near 1.1154, below which EUR/USD is likely to retest the 1.1125 support level.