EUR/USD Current Price: 1.0933
- US data came in better than anticipated but triggered no market’s reaction.
- The COVID-19 pandemic maintained investor’s hunger for safety.
- EUR/USD bearish, nearing a Fibonacci support level at 1.0890.
The EUR/USD pair has resumed its decline this Wednesday, as the pandemic gloom and doom continues to favour the American currency. The pair traded as low as 1.0904, unable, however, to extend its slide despite better-than-anticipated US data. The greenback appreciated throughout the Asian and European sessions, as speculative interest moved away from high-yielding equities, with global indexes in the red. US President Trump has finally acknowledged the risk poised to lives and warned the US of “painful” two weeks ahead. The number of cases in the US is now above 190,000 and a New Yorker dies every six minutes.
Markit released the final readings of its March manufacturing index, which were revised lower in Europe. The German PMI was confirmed at 45.4, while for the whole Union, it came in at 44.5. The US number was also downwardly revised from 49.2 to 48.5. However, the official ISM manufacturing index came in at 49.1 from 50.1 in February, beating the market’s forecast of 45. The ADP Survey showed that the private sector lost 27,000 positions in March, much better than the -150K expected, although down from 179K in February. The market was unimpressed by the figures but will focus on US weekly unemployment figures with claims seen at 3.5M for the week ended March 27.
EUR/USD short-term technical outlook
The EUR/USD pair has spent most of the last session of the day trading below the 38.2% retracement of its latest daily advance at 1.0950. In the short-term, and according to the 4-hour chart, the risk is skewed to the downside as the pair has fallen below all of its moving averages, as technical indicators remain within negative levels, the Momentum recovering but the RSI flat near oversold readings. The 50% retracement of the mentioned rally provides support at 1.0890.
Support levels: 1.0890 1.0850 1.0810
Resistance levels: 1.0960 1.1000 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. 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 stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.