The below is the daily chart of the . The currency pair’s EMAs are in a bearish stack. I.e. the green 5-day EMA, is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. The RSI(9) is also below 50 and indicative of an underlying momentum. We note that the EMAs are developing angle and separation, which is a sign that the downside momentum may be increasing.
The underlying fundamental data in the Eurozone has continued to disappoint and the downwards revised growth expectations by the European Commission are indicative of this. The next ECB rate release and statement is on the 7th March. In our view, Pres. Draghi is likely to convey a more dovish tone than previously expressed. If
this is the case, it is likely to negatively effect the EUR.