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EURUSD : More Losses to Come

EUR moving further down against US dollar today after ZEW released the economic sentiment data of Germany and the euro zone. According to the data the index of German economic sentiment fell to a 16 month low of 33.1 this month, missing the economist’s expectation for a decline to 41.0. The economic sentiment for euro zone ticked down to 55.2 missing the economist’s expectation for an increase to 63.5.

On the daily chart, EURUSD started declining after the ECB indicated that it begin to ease monetary policy as soon as its next meeting in June. The continued its decline after the economic sentiment release. We can see that the pair is currently near the key support level at 1.3693. The 100 day and 200 day SMAs are moving parallel showing that the investors are still in agreement of the strong trend. The pair might find support and rise from this level. However there is a bearish indication also. The 200 day SMA was earlier acting as a support for the pair which the pair broke and found support from the 100 day SMA which it broke today.This gives a bearish outlook on the pair.