The Euro (EUR) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of EURUSD to less than 1.2350 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing downside move.

EUR/USD Technical Analysis

As of this writing, the pair is being traded around 1.2328. A support can be noted around 1.2162, an immediate horizontal support ahead of 1.2100 the psychological number and then 1.1979, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 1.2453, an immediate horizontal resistance level ahead of 1.2500, the psychological level and then 1.2537, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 1.2300 resistance area is intact.

Eurozone Consumer Confidence

Euro zone consumer confidence fell by more than expected in February from a 17-year high in January, a flash estimate for the European Commission showed on Tuesday.

The Commission said that consumer sentiment fell to 0.1 points from a revised 1.4 points in January. Economists polled by Reuters had on average expected a figure of 1.0.

In the wider European Union, confidence also slipped – to -0.3 points from 0.4 points in January.

Uncertainty about possible euro zone reforms and Italian elections and difficulties forming a German government have so far taken a backseat to improved economic factors with unemployment in the euro zone at nine-year lows.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.