EUR/USD Current Price: 1.0802
- US April ADP survey at -20.23 million ahead of the Nonfarm Payroll report.
- Germany economic contraction steeper than anticipated weighing on the EUR.
- EUR/USD technically bearish and heading toward the 1.0700 region.
Investors seek safety this Wednesday, with the dollar and the yen stronger against most other rivals. The market’s sentiment was mixed, torn between optimism related to economic reopenings and renewed tensions between the US and China. The EUR/USD pair was under pressure for a third consecutive day, trading as low as 1.0781 to finally settle around 1.0810.
European data hit the shared currency, as March Germany Factory Orders plunged 15.6% monthly basis and fell by 16% when compared to a year earlier, worse than anticipated. The final versions of the Markit Services PMI were upwardly revised in Germany and the Union, although in Spain and France were worse than previously estimated. EU Retail Sales were better than expected in March, down anyway 9.2% in the month. In the US things were no better as the ADP survey on private job’s creation showed that during April, 20.23 million jobs were lost, although the market barely reacted to it.
This Thursday, Germany will release March Industrial Production, seen down by 7.5% when compared to February. The US will publish Q1 Nonfarm Productivity and Unit Labour Cost, alongside weekly unemployment claims for the week ended May 1, this last expected to show an increase of 3 million people. Data is relevant ahead of Friday’s Nonfarm Payroll release.
EUR/USD short-term technical outlook
The bearish pressure mounts around the EUR/USD pair, which barely holds above the 1.0800 figure. The 4-hour chart shows that the 20 SMA has turned sharply lower and is about to cross below the 100 and 200 SMA. Technical indicators, in the meantime, remain flat near their daily lows, showing no signs of changing direction. A steeper decline could be expected on renewed selling interest below 1.0790, the immediate support.
Support levels: 1.0790 1.0755 1.0710
Resistance levels: 1.0830 1.0865 1.0900
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.
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.