EUR/USD set to extend its decline below 1.1800

The EUR/USD pair has extended its decline to 1.1811, a fresh low for this year, and is poised to lose the 1.1800 mark, FXStreet’s Chief Analyst Valeria Bednarik reports.

See: EUR/USD to plummet towards Fibonacci marker at 1.1695 – DBS Bank

Key quotes

“The preliminary estimate for the EU services PMI printed at 48.8, beating the 46 expected while manufacturing output jumped to 62.4 from 57.9 in February. In Germany, the services index recovered into expansion territory, resulting in 50.8, while the manufacturing PMI came in at 66.6. The encouraging headlines were partially offset by the ongoing lockdowns in the Union.”

“In the US Durable Goods Orders resulted much worse than anticipated, falling by 1.1% against an expected 0.8% advance. The core reading resulted at -0.8% vs the 0.5% expected. Later today, US Federal Reserve chief Jerome Powell will reiterate his testimony on the CARES Act before the Senate Banking Committee.”

“The risk remains skewed to the downside in the near-term, as the 4-hour chart shows that moving averages maintain their firmly bearish slopes well above the current level. The EUR/USD pair needs now to lose the 1.1800 threshold to resume its decline.”