The bearish mood of markets, which, last Wednesday, already prompted a collapse in stocks, is likely to lead to a decline in EUR/USD. A slowdown in inflation in the Euro area will also put pressure on the pair as such will reduce the possibility of more aggressive rate hikes by the ECB at its meeting in June.
Technical picture:
The quote is above the middle line of the Bollinger indicator, above the SMA 5, but below the SMA 14. Meanwhile, the relative strength index (RSI) is above 50% and is indicating a possible slowdown in growth. The stochastic indicator is still moving upwards.
Possible dynamics:
A decline and consolidation below 1.0485 may lead to a local fall to 1.0390.