The Euro (EUR) inched lower against the US Dollar (USD) on Friday, decreasing the price of EUR/USD to less than 1.0700 following the US personal income report.  The technical bias remains bearish because of a lower low in the recent downside wave.

Technical Analysis

As of this writing, the pair is being traded around 1.0676.  A support may be seen near 1.0576, the trendline support area as demonstrated in the given below daily chart with brown color. A break and daily closing below the 1.0576 trendline support shall incite renewed selling pressure, validating a move towards the 1.0500 support which is a psychological number.

On the upside, a hurdle may be noted near 1.0790, the 61.8% fib level as well as short term horizontal resistance ahead of 1.0811, the upper trendline resistance as well as 50% fib level. A break and daily closing above the 1.0811 resistance shall incite renewed buying interest, validating a move towards the 1.0905 resistance zone. The technical bias shall remain bearish as long as the 1.0905 resistance zone is intact.

US Personal Income

U.S. consumer spending increased less than forecast in February, though income rose in line with expectations, while core inflation ticked up, official data showed on Friday. In a report, the Commerce Department said that personal spending increased 0.1% in February from the prior month, compared to expectations for a gain of 0.2% and the 0.2% rise in January. That was its smallest gain in six months. Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy if the GDP data comes better than forecast.