- EUR/USD stays under bearish pressure and trades below 1.0850.
- Disappointing PMI data from Germany and the Eurozone weigh on the Euro.
- The near-term technical outlook points to oversold conditions for the pair.
EUR/USD continues to push lower and trades below 1.0850 on in the European session on Wednesday after closing in negative territory on Tuesday. The near-term technical outlook points to oversold conditions as investors await PMI data from the US.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.49% | 0.27% | -1.67% | 0.55% | 1.37% | 1.51% | 0.18% | |
| EUR | -0.49% | -0.23% | -2.18% | 0.02% | 0.91% | 0.97% | -0.37% | |
| GBP | -0.27% | 0.23% | -2.05% | 0.24% | 1.14% | 1.19% | -0.15% | |
| JPY | 1.67% | 2.18% | 2.05% | 2.30% | 3.16% | 3.21% | 1.82% | |
| CAD | -0.55% | -0.02% | -0.24% | -2.30% | 0.90% | 0.97% | -0.38% | |
| AUD | -1.37% | -0.91% | -1.14% | -3.16% | -0.90% | 0.06% | -1.28% | |
| NZD | -1.51% | -0.97% | -1.19% | -3.21% | -0.97% | -0.06% | -1.30% | |
| CHF | -0.18% | 0.37% | 0.15% | -1.82% | 0.38% | 1.28% | 1.30% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
The souring market mood helped the US Dollar (USD) find demand on Tuesday and caused EUR/USD to stretch lower.
Early Wednesday, the data from Germany showed that the business activity in private sector contracted in July, with HCOB Composite PMI dropping to 48.7 from 50.4 in June. In the Eurozone, the Composite PMI declined to 50.1 from 50.9 in the same period.
Commenting on PMI surveys' findings, "beside the fact that we are talking about seasonally adjusted figures, looking at the two monitored sectors the situation deteriorated significantly in the manufacturing sector and counteracted moderate growth in the services sector," said Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. "According to our GDP Nowcast, growth in the third quarter is still on the cards, however."
Later in the day, S&P Global will release Manufacturing and Services PMI data for the US. Both readings are forecast to hold comfortably above 50. In case any of the headline PMIs arrive below 50, the immediate reaction could weigh on the USD and help EUR/USD stage a rebound.
Meanwhile, US stock index futures trade deep in the red following mixed earnings results from Tesla and Alphabet (Google) that were released after the closing bell on Tuesday. In case safe-haven flows continue to dominate the action later in the day, EUR/USD could have a hard time gaining traction even if the US PMI data disappoint.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart dropped below 30, reflecting oversold conditions in the near term. 1.0840-1.0850 (100-period Simple Moving Average (SMA), Fibonacci 38.2% retracement level of the latest uptrend) aligns as immediate resistance before 1.0880 (Fibonacci 23.6% retracement) and 1.0900 (psychological level, static level).
On the downside, supports align at 1.0810 (Fibonacci 50% retracement), 1.0790-1.0780 (200-period SMA, Fibonacci 61.8% retracement) and 1.0740 (Fibonacci 78.6% retracement).
Economic Indicator
S&P Global Composite PMI
The S&P Global Composite Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging US private-business activity in the manufacturing and services sector. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for USD.
Read more.Next release: Wed Jul 24, 2024 13:45 (Prel)
Frequency: Monthly
Consensus: -
Previous: 54.8
Source: S&P Global
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
AUD/USD jumps back above 0.6150 despite US-China trade tensions
AUD/USD has picked up fresh bids and regained 0.6150 in Thursday's Asian trading, resuming the previous recovery led by US President Trump's decision for an immediate 90-day tariff pause for many countries. However, escalating US-China trade war and Chinese disinflation could limit the Aussie's upswimg.
USD/JPY tumbles below 147.00, awaits US CPI for fresh impetus
USD/JPY has come under intense selling presure and drops below 147.00 in the Asian session on Thursday. The US-China trade war escalation and the divergent BoJ-Fed policy expectations underpin the Japanese Yen and weigh heavily on the pair amid a renewed US Dollar downtick. US CPI awaited.
Gold price awaits US CPI inflation amid deepening US-China trade war
Gold price is biding time near $3.100 in Asian trading session on Thursday, gathering strength for the next push higher. The further upside in the Gold price depends on the upcoming US Consumer Price Index (CPI) data.
Dogecoin soars as 21Shares files S-1 for DOGE ETF
Dogecoin rallied nearly 12% on Wednesday after asset manager 21Shares filed an S-1 application with the Securities & Exchange Commission to launch the 21Shares Dogecoin exchange-traded fund.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.