EUR/USD: Heading toward a critical support level at 1.0790

The EUR/USD pair has stabilised in the 1.0850 price zone, maintaining a negative short-term stance, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“The US has just released its March Trade Balance, which posted a deficit of $44.4B, slightly worse than anticipated. Later today, the April ISM Non-Manufacturing PMI and the Services PMI are foreseen at 32 and 27, respectively.”

“In the 4-hour chart, the pair met sellers around a now flat 20 SMA, and then broke below the 100 and 200 SMA, both converging directionless around 1.0880.” 

“Technical indicators have turned flat near oversold levels, with no signs of downward exhaustion. Overall, EUR/USD is skewed to the downside with 1.0790 being the next relevant support.”