Strong short term support for EUR/USD at 1.11
The most favorite currency pair remains unable to gather traction on Monday, relegating EUR/USD to the 1.1100 neighbourhood the Wall Street open.
Despite the prevailing selling interest on EUR, the forex pair manages quite well to keep the 1.1100 handle, a break of which could allow a re-visit of Friday’s lows in the 1.1080 region. The 100 hour MA has moved to 1.1065. The 38.2% is also at that level as is the high level from Feb 26 and the low from Feb 19. If there is a target on the downside today where support buyers should really have interest, it would be against that level.
Crude oil prices are intensifying their decline, hurting the riskier assets while the demand for the US dollar remains solid but not very strong.
Meanwhile ECB’S Villeroy states that Eurozone inflation remains too low.