EURUSD Retests 1.10 Again
04 April 2022
The USD continued to move higher on Monday, pressing the most traded FX pair to the critical support at 1.10.
Earlier in the day, the German trade balance for February improved from 8.8 billion EUR to 11.5 billion EUR, with exports rising 6.4% monthly while imports rose to 4.5%.
Additionally, the EU Sentix investor confidence crashed more than expected in April, falling to -18, down from -7 previously, and against expectations of -9.2.
Later today, the US factory orders for February are seen falling to -0.5%, down from 1.4% booked in January.
The bearish pressure on the EURUSD should continue as the divergence in monetary policies between US and EU keeps rising.
The following support for the euro is seen at 1.10, where the psychological level is converged with the short-term uptrend line. If that level is broken to the downside, we might see a drop toward 1.0930.
Alternatively, the pair must climb above 1.1050 in order to stabilize from the short-term perspective, while the key resistance remains near 1.1150, where the 50-day moving average stands (the purple line).