EURUSD Trades Within 1.10, Lacks Direction
15 March 2022
The euro was half a percent stronger on Tuesday, but so far, the pair has shown no genuine interest to remain above 1.10 for some considerable time.
Earlier in the day, German ZEW surveys crashed brutally, with the economic sentiment falling to -39.3 in March, down from 54.3. The current situation gauge dropped from -8.1 to -21.4. The survey for the whole eurozone fell from 48.6 to -38.7.
Additionally. the US PPI inflation jumped to 10% yearly in February, up from 9.7%, as expected. The monthly change decelerated slightly from 1% to 0.8%. The core PPI inflation ticked higher to 8.4% year-on-year.
The short-term uptrend line is currently near 1.0950, but the overall situation could be viewed as a continuation pattern. Thus, if the pair drops below the trend line, we might see a further decline, targeting 1.09 and possibly the current cycle lows near 1.08.
On the upside, should the euro rise above 1.10, we might see another leg higher, targeting the 1.1040 zone, or possibly the current swing highs in the 1.11 region.
As long as the euro trades below 1.12, the medium and long-term outlooks seem bearish, implying further losses for the single currency.