EUR/USD Current Price: 1.0954

  • Mounting tensions between the US and China weighed on the market’s mood.
  • Markit preliminary estimates for business output were better than anticipated but remained in contraction territory.
  • EUR/USD continues to post higher highs daily basis, its bearish potential remains limited.

The EUR/USD surged 1.1008, a fresh three-week high, but closed the day in the red around 1.0950. The market’s sentiment remained sour throughout the day, although risk-aversion during US trading hours benefited the greenback. The dismal mood was triggered by comments from Chinese speaker for the National People’s Congress, Zhang Yesui, who said that China will firmly defend its interest if the US does something to undermine the country’s core interests.  

In the data front, Markit released the preliminary estimates of May’s PMI for the Union and the US. In the EU, the manufacturing index improved from 33.4 to 39.5, while services output rose from 12 to 28.4. Despite upbeat figures, the European economy “remained stuck in its deepest downturn ever recorded,” according to Markit. In the US the manufacturing PMI recovered from 36.1 to 39.8, while the Services PMI recovered to 36.9 from 26.7. Initial Jobless Claims for the week ended May 15, which resulted at 2.43 million, slightly worse than the 2.4 million expected.

Friday is a quiet day in terms of data, as the ECB will publish the Minutes of its latest meeting, while the US won’t release relevant macroeconomic figures. The focus will remain on mounting tensions between Washington and Beijing and coronavirus-related headlines.

EUR/USD short-term technical outlook

The EUR/USD pair bottomed at 1.0936, above a static support level at 1.0920. The decline seems corrective after the test of the critical 1.1000 price zone. The 4-hour chart shows that the pair met buyers on a test of a sharply bullish 20 SMA, while technical indicators gyrated sharply lower, the Momentum now flat around its mid-line and the RSI at around 58. Overall, the bearish potential seems limited, but it could gather a firmer pace on a break below 1.0920 the immediate support level.

Support levels: 1.0920 1.0890  1.0850

Resistance levels: 1.0975 1.1010 1.1045  

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

When is Japan’s data-dump and how could it affect the USD/JPY?

While the risk catalysts have recently been lighter, mainly due to the equities’ upbeat performances, the underlying fears aren’t yet wiped out. Technically, buyers keep targeting the 108.05/10 area comprising multiple highs marked since April-19.

Read more

AUD/USD: Upside momentum again fizzles around 11-week top, still above 0.6600

Having marked yet another failure to stay strong beyond 0.6650, AUD/USD remains depressed around 0.6640/35 at the start of Friday’s Asian session.Risk-tone remains positive as equities cheer hopes of further stimulus, economic restart.

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