EUR/USD Current Price: 1.1134
- Markit Manufacturing PMIs confirmed profound economic damage from coronavirus pandemic.
- Tensions between the US and China kept escalating, equities advanced anyway.
- EUR/USD bullish, could run to 1.1240 on a break above 1.1150 price zone.
The greenback started the day with the wrong footing, edging lower against most major rivals. The EUR/USD pair peaked at 1.1153, and settled above 1.1120, with modest intraday gains. The dollar suffered ever since the day started amid protests spreading across the US and turning more violent over the weekend. The shared currency retreated after the final versions of Markit Manufacturing PMIs for the Union showed a modest bounce from record lows, although “still indicated a considerable rate of contraction in operating conditions,” according to the official report. The EU May Manufacturing PMI was confirmed at 39.4. The US index for the same month was confirmed at 39.8, as previously estimated. Meanwhile, the official ISM Manufacturing PMI bounced from 41.5 in April to 43.1 in May, missing the market’s forecast.
Equities edged higher despite market talks suggesting China could halt some US agricultural goods’ imports, although several European markets remained closed amid a local holiday. This Tuesday, the macroeconomic calendar for the EU and the US will be quite light, with just minor data scheduled to release in America.
EUR/USD short-term technical outlook
The EUR/USD pair has stabilised in the 1.1130 price zone during the US afternoon, retaining its short-term bullish stance ahead of Tuesday’s opening. The 4-hour chart shows that the 20 SMA continues advancing below the current level but above the larger ones, as technical indicators resumed their advances after correcting overbought conditions. As mentioned in a previous update, the 1.1150 area is quite a tough resistance. Once above the level, the pair has room to extend its advance to 1.1240, the next relevant resistance level.
Support levels: 1.1065 1.1020 1.0970
Resistance levels: 1.1150 1.1190 1.1240
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
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.