The single currency has finally reacted to the considerable gap between the US and the EU macroeconomic data. The fact is that the US macroeconomic reports are often positive, whereas the European statistical data is mainly negative. In addition, the European Union had to agree to start paying for gas in rubles. Notably, most European officials were burning with indignation. Nevertheless, the euro slumped during the US trade. The fact is that the European traders are denying the reality, while traders from the US are more realistic. In any case, the single currency remains under significant pressure. It is hard to predict when the pressure will become weaker. However, macroeconomic indicators are clearly reflecting that mutual sanctions imposedby Western countries and Russia are affecting Europe more than other countries.
After a short-lived pause, the euro/dollar pair resumed falling. As a result, it broke the level of 1.1000 and slid to the local low of the previous week. This movement points to a great interest in short positions. This, in turn, allowed the US dollar to recoup most of its losses.
On the four-hour chart, the RSI technical indicator approached the oversold area, but it did not downwardly break line 30. Thus, the bearish sentiment still prevails in the market.
In the same period, the Alligator indicator points to a downtrend, whereas its MAs are headed down.
Outlook
At the moment, the number of short positions is declining due to the influence from the intermediate support area of 1.0940/1.0965. Thus, the pair has a chance to climb to 1.1000. A new drop may take place if the price settles below 1.0940 on the four-hour chart.
In terms of the complex indicator analysis, we see that technical indicators are signaling sell opportunities on the short-term, intraday, and short-term periods amid a rapid decline in the euro.