EUR/USD rebounds above 1.0970 from weekly lows after US data
|- US JOLTS comes in below expectations while Factory Orders rise 0.9% versus the expected 0.8%.
- The FOMC meeting kicks off, with a 25 basis points rate hike already priced in.
- EUR/USD turns flat for the day amid a weaker US Dollar.
The EUR/USD erased losses after the release of US economic data, rising from its weekly lows to levels above 1.0970. The pair is now flat for the day, ending a three-day negative streak, ahead of crucial central bank meetings.
Mixed US data after EZ inflation, ahead of FOMC
The final reading of US Factory Orders showed a rise of 0.9% in March, slightly above the market consensus of 0.8%. The JOLTS report showed that "the number of job openings decreased to 9.6 million on the last business day of March," softer than the expected 9.7 million.
The US Dollar lost momentum after the reports, and EUR/USD rebounded rising more than 25 pips. The US Dollar Index is up for the day, trading at 102.25. US yields have plunged to new lows, with the US 10-year yields falling to 3.47% and the 2-year to 4.04%.
Attention now turns to the central banks. The FOMC will announce its decision on Wednesday, with a 25 basis point rate hike already priced in, while the European Central Bank (ECB) will have its meeting on Thursday. Prior to the FOMC, ADP will release its employment report on Wednesday.
Short-term outlook
The EUR/USD pair currently holds a bearish bias in the short term and is challenging an important support level around 1.0950. It bottomed on Tuesday at 1.0941, the lowest level since April 21, but has since bounced back toward 1.0980.
If the Euro recovers levels above 1.0970, it could change the intraday bias to positive; resistance levels above are located at 1.0990 and 1.1005. Under 1.0950, further weakness seems likely, with the next crucial support level at 1.0930.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.