FX.co ★ Currency-Exchange | EUR/USD

The Euro (EUR) continues its recent slump against the US Dollar (USD), hovering around 1.0610 during Asian trade on Wednesday. This marks the sixth consecutive session of losses for the EUR/USD pair, pushing it close to its all-time low. Despite the downtrend, a glimmer of hope flickers on the daily chart. The pair finds support at its nine-day Exponential Moving Average (EMA), hinting at a possible short-term bounce. This could lead to a retest of the resistance level established by the previous week's low at 1.0601. Fundamentals of the EUR/USD: However, the key event for the Euro's fate lies ahead. The European Central Bank's (ECB) interest rate decision on Thursday is grabbing the spotlight. With inflation unexpectedly dipping in March, markets heavily favor the ECB to maintain current rates at their April meeting. But the bigger question revolves around future policy. The expectation for an ECB rate cut cycle later this year is strong, with derivatives data suggesting an over 90% chance of a cut by June. Investors will keenly dissect the ECB's commentary for clues on the pace and extent of this potential easing cycle. Daily Time Frame Technical Outlook: The pair finds immediate support at the crucial 1.0850 level, followed by the 21-day EMA at 1.0762. A decisive break below these could send the Euro spiraling towards the psychological 1.0800 level and potentially retesting the previous week's low of 1.0600.

Adding to the bearish sentiment, technical indicators like the Moving Average Convergence Divergence (MACD) and the 14-day Relative Strength Index (RSI) signal weakness in Euro momentum. The lagging MACD indicator's confirmation of this downtrend could further embolden sellers and push the Euro lower.