FX.co ★ EURUSD: Under pressure

Overview:
EUR/USD is trading with bearish bias. Spotlight is on 10:00 GMT Germany February ZEW indicator of economic sentiment. Euro sentiment dented after European Central Bank President Draghi in remarks to the European Parliament committee repeated that EUR exchange rate could affect ECB's forecasts for economic growth and inflation, suggesting significant further EUR gains may prompt stimulus measures from the ECB. EUR/USD is also undermined by positive USD sentiment; EUR demand on buoyant EUR/JPY as weak yen sentiment supports the cross. But euro sentiment soothed after Bundesbank said in its monthly report that Germany will avoid recession and return to growth in 1Q 2013; Bank of Spain saying bad debts held by Spanish banks dropped sharply in December from November. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold; five-day moving average is below 15-day MA and falling.
Preference:
Sell below 1.338 with 1.3305 and 1.326 in sight.
Support levels:
S1 - 1.3326 (Monday's low)
S2 - 1.3306 (Friday's low)
S3 - 1.3275 (55-day moving average)
Alternative scenario:
Buy above 1.338. The upside breakout of 1.338 will open the way to 1.3415 and 1.344.
Resistance levels:
R1 - 1.3415
R2 - 1.344
R3 - 1.3485
Technical comment:
The pair stands below its new strong resistance and remains under pressure, the RSI stands around its neutrality area.