EUR/USD: Bears Targeting 2024 Low

The Euro suffered a decline to fresh multi-week lows early on Tuesday, primarily influenced by a robust dollar and recent dovish remarks from ECB policymakers, who anticipate implementing four rate cuts in 2024.

Monday saw a 0.4% decrease, with the currency closing below the crucial level of 1.0762 (Fibonacci 76.4% retracement of the upleg from 1.0695 to 1.0981). This decline reinforces the bearish short-term perspective and exposes significant support at 1.0695 (the 2024 low recorded on February 14).

Negative momentum is strengthening on the daily chart, accompanied by a bearish configuration in moving averages (the 10/200-day moving average death cross, and the imminent formation of a bear-cross between the 55 and 200-day moving averages), indicating a bearish technical outlook. However, oversold conditions might impede bearish momentum, leading to a period of consolidation.

Key support levels around the 1.0800 zone (daily cloud base and Fibonacci 61.8% retracement) have been breached and now serve as robust barriers likely to limit any upside movement.

Market participants are eagerly awaiting fresh signals from today’s release of German CPI data, with further attention on Wednesday’s Eurozone inflation report for additional insights.

Res: 1.0762; 1.0804; 1.0834; 1.0861

Sup: 1.0724; 1.0695; 1.0611; 1.0585