EUR/USD Current Price: 1.1007

  • Tensions between the US and China weigh on the market’s sentiment.
  • US weekly unemployment claims rose by 2.43 million in the week ended March 15.
  • EUR/USD battling to extend gains beyond the critical 1.1000 threshold.

The EUR/USD pair has spent the first half of this Thursday consolidating just below 1.1000, bottoming during European trading hours at 1.0951. The market’s sentiment has turned sour amid tensions between the US and China. The US blaming China for the ongoing pandemic has triggered measures that further affect global growth.

The country is tightening controls on the use of its technology by Huawei while launching an investigation over the origins of COVID-19. China cut beef imports from Australia and impose punitive tariffs on barley coming from the country, as Australia seconds the investigation. With the current fragility of global economies, the last that’s needed is an escalation in the trade war.

European data has beat expectations, but, according to Markit,  the local economy “remained stuck in its deepest downturn ever recorded in May due to ongoing measures taken to control the coronavirus disease 2019 (COVID-19) outbreak.” The preliminary PMIs estimates for the EU showed that the manufacturing index improved from 33.4 to 39.5, while services output rose from 12 to 28.4. In Germany, however, manufacturing output improved by less than anticipated, printing at 36.8.

 The pair rose above 1.1000 ahead of the US Initial Jobless Claims for the week ended May 15, which resulted at 2.43 million, slightly worse than the 2.4 million expected. Later, Markit will publish the preliminary estimates of the US PMIs. Both, Services output and Manufacturing output are expected to have bounced, but also to remain well into contraction territory.

EUR/USD short-term technical outlook

The EUR/USD pair is holding on to gains a few pips above 1.1000, bullish, according to intraday chats. Equities bouncing from their lows add to chances of another leg higher. In the 4-hour chart, technical indicators have resumed their advances, the Momentum firmly above its mid-line and the RSI at overbought levels. The 20 SMA heads firmly higher well below the current level, and above the larger ones. The risk remains skewed to the upside, with a test of 1.1120 on the table for the upcoming sessions.

Support levels: 1.0965 1.0920 1.0890

Resistance levels: 1.1010 1.1050 1.1090

View Live Chart for the EUR/USD

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD moves closer to 1.1100 amid upbeat market mood

EUR/USD is trading well above 1.1050, hitting new 8-week highs. US data was mixed with a ray of light coming from continuing claims. Hopes about the EU Fund and reopenings trump Sino-American relations.

EUR/USD News

AUD/USD retreats ahead of the close as US equities turn red

After spending most of the day within positive levels, US indexes turned south ahead of the close, dragging the Aussie alongside. AUD/USD still up for the day in the 0.6630 price zone.

AUD/USD News

Goldman Sachs puts Bitcoin on par with Gold

One of the world's largest investment banks, Goldman Sachs, announced a conference for its clients entitled “Implications of Current Inflation, Gold and Bitcoin Policies”

Read more

Gold: Limited gains below the $1730/oz level for XAU/USD

After bouncing from the 1690/1700 price zone XAU/USD is stalling below the 1730 resistance and the 50 SMA on the four chart. The picture is mixed as it seems the metal is challenging a tough resistance near the 1730 level.

Gold News

WTI oil prices rally on gasoline demand and hopes of output cuts’ extension

WTI crude oil prices have appreciated more than 5% on Thursday to reach $34 and approach two-month highs. Investors' optimism about an increase of gasoline demand and speculation of an OPEC+ deal to extend output cuts are driving crude prices higher.

Oil News

Forex Majors

Cryptocurrencies

Signatures