EUR/USD marked in a fifth straight down day on Tuesday.
Market headlines take US data misfire in stride.
US Durable Goods Orders due on Wednesday as Euro traders left to wait.
EUR/USD has slowed its recent pace of declines, but still lost ground for a fifth consecutive trading day as price action continues to test below 1.0800. The Euro is struggling to find its feet as a notable lack of meaningful EU data on the economic docket leaves Fiber bidders at the mercy of geopolitical headlines and market flows from US data releases.
On Tuesday, the US Conference Board (CB) reported an increase in one-year consumer inflation expectations, rising to 6.2% in March from 5.8% in February. Consumers remain highly concerned about the persistently high prices of essential household items, particularly eggs, and the potential inflationary impacts of tariffs imposed during the Trump administration. Furthermore, the CB’s consumer confidence survey revealed a drop in future economic expectations, plummeting to a new 12-year low of 65.2 in March, significantly below the 80.0 mark that typically signals a possible recession.
Adding to these concerns, Moody’s ratings agency issued a strong warning early Tuesday, highlighting a “deterioration” in the US’s fiscal strength, particularly regarding the increasing challenges of servicing US debt. Moody’s also projected that the country’s fiscal strength is likely to face a prolonged decline, a statement likely to anger Donald Trump and his administration, who are currently advocating for a substantial increase in the debt ceiling from Congress.
In US economic news, Durable Goods Orders are set to be released during the New York market session. Overall, these orders are anticipated to decrease by -1.0% in February, following a solid rebound of 3.2% in January.
EUR/USD price forecast
A steady five-day drop has pushed EUR/USD back below the 1.0800 handle, and the pair could be poised for a furthe backslide into the 200-day Exponential Moving Average (EMA) near 1.0675. A near-term turnaround has dragged Fiber back down after a bullish push to the 1.0950 technical level fizzled out, and EUR/USD now has a fresh technical ceiling to contend with if bidders are able to get their ship keel-side down once more.
EUR/USD daily chart
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