- Summary:
- EURUSD is under selling pressure in today's trading after it broke to the downside of its symmetrical triangle. Technicals suggest more downside potential.
EURUSD is down by over 0.13% in today’s Asian session ahead of the top-tier German IFO Business Climate report for April. As of this writing, the currency pair is in the red by over 13.5 pips at 1.0764.
Due at 8:00 am GMT, the report reflects the overall sentiment of business leaders in Germany given the current economic conditions. The forecast is for it to print at 79.8. This consensus is lower than the reading for March which was at 86.1. Consequently, it suggests that market analysts expect that confidence has deteriorated.
A worse-than-expected reading could exacerbate the slide in EURUSD. On the other hand, a surprise to the upside could help the currency pair hold on to support.
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EURUSD Outlook
On the 4-hour time frame, it can be seen that EURUSD has been trading below the symmetrical triangle. This chart pattern, prior to a breakout, is widely considered as a neutral indicator. However, with the currency pair trading well below it, many technical analysts would consider this as a sign that EURUSD is dominated by sellers. Should this turn out to be the case, we could see price fall to its March 20 lows at 1.0655.
It’s worth noting, however, that the currency pair is trading around its April 3 lows at 1.0770. If there are buyers at this level, EURUSD could bounce to retest the triangle at the 1.0900 handle.