The common currency continued to extend losses for a third consecutive session. Economic confidence in the region fell to 105.5 in March, marking the lowest level since October 2016. Data from Germany was also disappointing as inflation eased to a pace of 1.3% on the month in February, down from 1.5% previously.
Can the EURUSD Bounce Off the Support?
The currency pair has extended the declines lower to test the support area of 1.1217. A further extension lower could push the common currency to decline to lows of the 1.1174 region. The Stochastics indicate that the currency pair is strongly oversold and this could offer some short term respite to the upside. Still, the gains are unlikely to come by with the minor resistance at 1.1295 likely to hold the correction.
