EUR/USD Current price: 1.1743

  • Encouraging news coming from China overshadowed tepid macroeconomic data.
  • Markit September PMIs missed expectations in Europe and the US.
  • EUR/USD needs to break above the weekly high to gain bullish potential.

The EUR/USD pair advanced on Thursday on the back of a better market mood but held below its weekly high of 1.1755. Global markets welcomed relief news related to the Chinese Evergrande property company, as the risk of a default receded due to a possible split and support from the local government. The greenback was pressured throughout the day, edging lower against all of its major rivals.

EUR gains were limited by tepid local data, as  Markit published the preliminary estimates of its September PMIs. German and EU readings held into expansion territory but contracted from their August readings, also missing the market’s expectations. At the same time, news hit the wires about ECB policymakers seeing the risk of inflation exceeding projections, which underpins the case of tapering in the EU, despite the cautious stance from Lagarde & Co.

Across the pond, macroeconomic data was also poor. The US released Initial Jobless Claims for the week ended September 16, which printed at 351K, worse than anticipated. Additionally, the preliminary estimate of the Markit Manufacturing PMI for September resulted at 60.5, missing expectations, while the Markit Services PMI came in at 54.4 vs the 55 expected.

Germany will publish the September IFO survey on Friday, and the Business Climate is foreseen improving from 99.4 to 100.4, while the US will release August New Home Sales.

EUR/USD short-term technical outlook

The daily chart for the EUR/UD pair shows that further gains are still in doubt. Technical indicators bounced from near oversold readings but remain well into negative territory. The 20 SMA stands pat at around 1.1800, while the longer ones maintain modest bearish slopes above the latter.

The pair is neutral in the 4-hour chart, as it managed to advance above a now mildly bullish 20 SMA while still below the longer ones. However, technical indicators lack directional strength within neutral levels. Bulls will have better chances if the pair advances beyond 1.1755, the 61.8% retracement of its latest daily advance and the weekly high.

Support levels: 1.1700 1.1660 1.1620  

Resistance levels: 1.1755 1.1780 1.1830

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. 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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more