EUR/USD - Four-day losing streak has ended, what’s next?

EUR/USD ended Monday on a positive note at 1.0669, thereby snapping the four-day losing streak, although the gains are still being capped by the 50-DMA level of 1.0670.

Supported by 4-hour 200-MA

The sell-off from the high of 1.0906 came to a halt on Friday at the 4-hour 200-MA level. Since then, the downside has been capped by the 4-hour 200-MA seen today at 1.0660 levels.

The talk of ECB taper is gathering pace. Meanwhile, the Treasury yields are on the retreat this Tuesday morning. The Intraday technical indicators - RSI is oversold/is recovering from the oversold territory. Thus, the next move could be higher. However, caution ahead of the Fed minutes due tomorrow is likely to keep the gains under check.

The Eurozone retail sales data due later today is likely to show the consumer spending rebounded in February. Meanwhile, the US trade deficit, factory orders and comments from Fed’s Tarullo may affect the demand for the US dollar.

EUR/USD Technical Levels

The spot was last seen trading around 1.0665. A 4-hour close below the 200-MA level of 1.0660 would signal continuation of the retreat from the high of 1.0906 and would open up downside towards 1.0628 (100-DMA) and 1.06 (zero levels). On the higher side, breach of hurdle at 1.0670 (50-DMA) could yield a re-test of 1.0702 (Mar 31 high) and 1.0748 (10-DMA).