EUR/USD fails to recover and remains near weekly lows

The bounce from the lows of the euro against the US dollar was short-lived and EUR/USD is again moving toward daily lows. Currently, it trades at 1.0720/25, almost 50 pips below yesterday’s closing price. 

Today’s slide represents the third decline in a row. From Monday’s highs, it lost almost 200 pips, making a sharp reversal from 4-month highs above 1.0900.

The slide of the last hours has been mostly caused by a weak euro across the board. The currency lost momentum with statements from ECB officials and also after EUR/GBP broke below 0.8600. German inflation data, that came below expectations, failed to offer support to the euro. 

Advanced German CPI up 1.6% YoY in March

Technical levels 

Resistance levels might be located at 1.0720 (daily low), 1.0700 (psychological) and 1.0765/70 (Feb 16 high). On the flip side, resistance could be seen at 1.0745 (20-hour moving average), 1.0770 (daily high) and 1.0805 (Mar 23 high).