EUR/USD Current Price: 1.1311
- A better market mood made safe-haven currencies gave back some of Friday's gains.
- German Business Climate improved in March despite discouraging macroeconomic figures.
The EUR/USD pair peaked at 1.1331, settling around 1.3110 by the end of the day. The advance was a mixture of a positive German report and easing dollar demand as the dismal performance of equities that started Friday came to a halt during London trading hours, with Wall Street posting a modest intraday slide, off its daily lows. As for data, the German IFO survey showed that the Business Climate Index rose to 99.6 in March from an upwardly revised 98.7 in the previous month. The Current Assessment improved to 103.8 while Expectations surged to 95.6, all of them beating the market's consensus. The US released the Chicago Fed National Activity Index which came in at-0.29 in February, while January's figure was upwardly revised to -0.25 from -0.47, and the Dallas Fed Manufacturing Business Index for March, which printed 8.3, better than the 7.0 expected. The pair retreated ahead of the close amid the absence of a bullish catalyst and a heavy Pound.
Tuesday will bring the German GFK Consumer Confidence Survey, seen at 10.8 in April, unchanged from the previous month, while the US will release Housing Starts and Building Permits for February, and the latest CB Consumer Confidence Index.
The EUR/USD pair is struggling now around the 50% retracement of the 1.1175/1.1447 rally, with this Monday's recovery looking corrective after Friday's slump, as technical indicators in the 4 hours chart have recovered from oversold readings, with the Momentum heading higher well below its mid-line and the RSI having already lost upward strength, now consolidating around 45. Furthermore, the pair was unable to clear the 100 and 200 SMA, which anyway lack directional strength, and continues developing below a bearish 20 SMA, which now nears the 38.2% retracement of the mentioned rally, reinforcing the strength of the static resistance level at 1.1445.
Support levels: 1.1280 1.1230 1.1190
Resistance levels: 1.1345 1.1385 1.1420
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.