EUR/USD Forecast: Retreating from a critical resistance area

EUR/USD Current Price: 1.2143

• Federal Reserve chief Powell is due to testify on monetary policy before Congress.
• US CB Consumer Confidence is expected to bounce in February to 90.2.
• EUR/USD eases from a fresh weekly high of 1.2179, holds within familiar levels.

The EUR/USD pair is down from a daily high of 1.2179, trading around the 1.2140 level, as the American dollar found some demand during the European morning, while the shared currency is unable to attract substantial buying interest. Still, the greenback is the weakest, as investors wait for US Federal Reserve chief Jerome Powell, scheduled to testify on monetary policy before Congress.

The EU published the final version of January inflation, which was confirmed at 0.9% YoY. The core annual reading came as previously estimated at 1.4%. Later into the American session, the US will publish February CB Consumer Confidence, foreseen at 90.2 from 89.3 previously.

EUR/USD short-term technical outlook

The EUR/USD pair is under mild-pressure, with a limited bearish scope in the near-term. Still, the pair retreated from the critical 1.2170/80 price zone. The 4-hour chart shows that it’s holding above all of its moving averages, with the 20 SMA advancing above the longer ones. Technical indicators ease from near overbought readings but remain well into positive levels. The RSI indicator has lost bearish momentum, currently around 55. A steeper decline could be expected if the pair losses the 1.2100 level.

Support levels: 1.2100 1.2060 1.2015  

Resistance levels: 1.2175 1.2215 1.2250

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