The euro currency gave up the gains from the day before after some of the economic institutes in Germany cut growth forecasts. Forecasts for the leading economy in the eurozone were cut to 0.8% from 1.9% previously. There were also cautions that growth could further slow in the event of a no-deal Brexit. The grim data was underlined by German factory orders which fell 4.2% in February, marking the biggest drop in two years.
EURUSD Holding on to Support – Can it Break Out Higher?
The 4-hour chart in the EURUSD currency pair shows a potential inverse head and shoulders pattern that is taking shape. This comes after the common currency failed to break the resistance at 1.1246 and fell to 1.1217. This marks the formation of the right shoulder. If the neckline resistance at 1.1246 is breached, then the EURUSD could extend the gains to 1.1275 at the very least.
