Under pressure

With the beginning of the week the EUR/USD pair marked a fresh 4 month high, but meanwhile since then we witnessed huge plummeting and the current market price is 1.0680. The elevated mood on Monday was supported by the speculation that the ECB was considering tapering its stimulus program along with the largely weakened greenback. Today the pair printed 2 week low at 1.0668 which is clearly explained by the mild local preliminary inflation data for March that frames the ECB's picture that the latest advance was temporal. 
Technically speaking, the pair is set in short term bearish mode, given that on the 4 hour chart the 20-day SMA has sharply turned to downside and is about to cross with the 100-day SMA. A recovery above the both SMAs seems to be very hard at this very moment.

Technical indicators are showing extreme overbought conditions and are displaying lack of momentum. RSI has slightly retreated to 30 level, while stochastic is staying flat below 10 region.

In line with the short term bearish outlook is standing the key support at 1.0660 and in case of breaking it, further weakness is seen at 1.0620.

As Freddie sings „These are the days – it never rains but it pours”.