Technically, EUR/USD remains within an interesting consolidation between 1.1223 and 1.1045 on the H4 scale. The upper boundary contains January’s opening level at 1.1222, a 38.2% Fibonacci resistance at 1.1223 and the 1.12 handle.
The 2019 yearly opening level from 1.1445 elbowed its way back into the spotlight last week, with bears reasserting their dominance and snapping a three-week winning streak. Down more than 180 points, price dipped its toes back within a descending channel formation (1.1569/1.1215), and is poised to revisit support priced in at 1.0873 (the 2016 yearly opening level) this week, in line with the primary trend, drifting south since 2018.
Europe’s single currency attempted a comeback against the buck off the 61.8% Fibonacci retracement ratio at 1.1053 on the H4 scale, a touch north of March’s opening level at 1.1045, after free falling from highs at 1.1333.
Europe’s shared currency coasted lower Wednesday, fading session peaks at 1.1366. As markets ready themselves for the European Central Bank, H4 price is seen languishing marginally south of 1.13, testing lows of 1.1257. US inflation data (CPI) announced modestly optimistic figures in February, though was largely ignored by market price.
Sentiment somewhat steadied Tuesday, prompting a rebound in US Treasury yields and the US dollar index. The DXY reclaimed 96.00 to the upside and is poised to shake hands with 96.50.
