Looking at the benchmark EUR/USD currency exchange rate, the euro currency is running out of steam while trading around 1.2150 during the early Asian trade session on Wednesday. A Doji candlestick has appeared on the daily chart which signals possible trader hesitation.
Today, the euro area will release quarterly flash gross domestic product data as well as monthly trade balance figures. Italy is also publishing monthly trade data. The United States is releasing monthly housing starts data as well as monthly building permits. The European Union and the United States have agreed to start discussing how to roll back Trump era steel tariffs and other harmful barriers to trade.
The United Kingdom is publishing key labor data. This includes the monthly unemployment rate, claimant count change and average (3 month) hourly earnings.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above daily EUR/USD MT 4 price chart, along with the Doji candlestick, there is also a downward sloping 14 day MACD histogram. This could favor the euro sellers heading into today. With that said, price action needs to stay below 1.2170 for the euro currency bears to fully enter into this Forex market.
There is also key upside barrier lining up at 1.2180 and 1.2190 that have held up well over the past several trade sessions. A daily close above 1.2190 would open the door to challenge the next upside barrier in play at 1.22. The EUR/USD Forex market has another technical layer of resistance in play at 1.2245.
On the downside, there is immediate technical support in play at 1.21. A sustained close below this level could challenge a downside support congestion zone at 1.2085 to 1.2080. This area is supported by the short-term 21 day simple moving average (SMA). There is also a rising trend line in play from 31 March in this area.
A daily close below 1.2080 opens the door for the technical support level lining up at 1.20. The next layer of technical support comes into play at 1.1985.