EUR/USD In partly cloudy mood

The EUR/USD pair started the new week enthusiastically and hit a monthly high at 1.0713, but now it seems that bulls’ power is fading away as the current market price is 1.0657. On the macro scene ECB’s Friday release fuelled the single currency’s strength while the US dollar is seen rather weaker. 

Technically speaking, on the four-hour time frame are showing mixed signs. The 20-day moving average has turned sharply to north and crossed the 100-day SMA to above. RSI and stochastic have retreated from overbought territory, but yet are placed above their mid-lines. The pair was flirting for shortly today with the 1.0705 level, which importance came from the 38.2% Fibonacci retracement of latest November to January downwards slope and is acting as a resistance. Currently  EUR/USD is bearish corrective mood, but breaking the support at 1.0635 will drag the pair lower. 

The upcoming week is serving abounding set of macro data within the geomagnetic field of importance. During the week of the Central Banker we will also witness Germany’s inflation numbers and March ZEW survey , Industrial Production for January within the EU and February’s PPI figures in the US. It seems to be quite an interesting and volatile week and given the fundamental and technical readings, the prognosis for the EUR/USD is going to be partly cloudy.