EUR/USD Current Price: 1.0530
- The June flash S&P Global PMIs came in worse than anticipated, fueling the market’s concerns.
- Risk-off mood weighed on high-yielding assets, sending the greenback up.
- EUR/USD gains bearish traction in the near term and could reach fresh weekly lows.
The EUR/USD pair trimmed most of its weekly gains on Thursday, hovering around 1.0530 while heading into the last trading day of the day. The American dollar benefited from a souring mood that weighed on high-yielding assets. The dismal sentiment was triggered by more comments from FOMC’s leader Jerome Powell comments and macroeconomic data pointing to a sharp economic slowdown.
The flash S&P Global PMIs for June painted a gloomy picture as EU economic activity hit a 16-month low, reflecting a stalling of demand growth. The manufacturing PMI contracted to 52, while the services index shank to 52.8 from 56.1 in May.
About Germany, the report showed activity lost momentum at the end of the second quarter while adding that "firms' expectations towards future activity slumped to their lowest since the first wave of the COVID pandemic over two years ago, with manufacturers growing increasingly pessimistic about the outlook." Germany's flash Manufacturing PMI printed at 52, while the services index came in at 52.4.
Finally, the US manufacturing index slowed to 52.4 in June, an almost two-year low, while the Services PMI contracted to 51.6 from 53.4 in the previous month, a five-month low. The US also published Initial Jobless Claims for the week ended June 17, which rose to 229K, while the Q1 Current Account posted a deficit of $ 291.4 billion, both missing the market's expectations.
On Friday, the macroeconomic calendar will include the final readings of the German Q1 Gross Domestic Product and the June IFO Business Climate survey. On the other hand, the US will release the June Michigan Consumer Sentiment Index and May New Home Sales.
EUR/USD short-term technical outlook
The EUR/USD pair bottomed for the week at 1.0468, while attempts to advance beyond the 1.0600 level were quickly rejected by bears. The daily chart shows that a bearish 20 SMA provides intraday resistance around the 1.0600 level, while the longer moving averages maintain their firmly bearish slopes far above the shorter one. Technical indicators have turned lower within negative levels, in line with further declines ahead.
The 4-hour chart offers a neutral-to-bearish stance, as the pair currently develops below all of its moving averages. The 100 SMA is crossing below the 200 SMA, both in the 1.0570/80 price zone. Technical indicators in the mentioned time frame remain below their midlines, although without clear directional strength.
Support levels: 1.0480 1.0430 1.0385
Resistance levels: 1.0555 1.0600 1.0640
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.