EUR/USD Current price: 1.1250
- The US will release fresh growth and inflation data on Wednesday.
- EU Manufacturing and services activity recovered in November, according to Markit.
- EUR/USD bounced modestly from a fresh 2021 low, bears retain control.
The EUR/USD pair trades marginally higher on a daily basis and is heading into Wall Street’s close at around 1.1250. It posted a lower low for the year at 1.1225, as demand for the greenback persists in a risk-averse environment.
The shared currency advanced following the release of the November flash Markit PMIs, which came in better than anticipated. The German manufacturing index printed at 57.6, while the services one improved to 53.2. For the whole EU, the Manufacturing PMI came in at 58.6, while the Services Index resulted in 56.6. However, the accompanying report noted that the upturn was accompanied by a marked increase in inflationary pressures during the month, with costs and selling prices rising at record rates.
On the other hand, US figures were mixed, as the Manufacturing PMI improved by more than anticipated to 59.1, while the Services PMI unexpectedly contracted to 57. On a positive note, the November Richmond Fed Manufacturing Index printed at 11, better than the 5 expected.
Wednesday will see quite a busy macroeconomic calendar, as the US celebrates Thanksgiving on Thursday. The country will publish October Durable Goods Orders, the second estimate of the Q3 Gross Domestic Product, the latest FOMC Meeting Minutes and October core PCE inflation foreseen at 4.1% from 3.6% previously. PCE inflation is the US Federal Reserve favourite measure of prices pressure. Earlier in the day, Germany will release the November IFO survey on Business Climate.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair has room to extend its decline. The daily chart shows that technical indicators have turned flat within oversold levels without signalling an upcoming recovery. At the same time, the pair has extended its decline well below its moving averages, with the 20 SMA heading firmly lower below the longer ones and currently at around 1.1470.
The near-term picture shows that the intraday advance could be seen as a mere correction. The 20-SMA maintains a firmly bearish slope, providing intraday resistance, a handful of pips above the daily high. Meanwhile, technical indicators corrected oversold conditions, with the RSI now flat at around 36 and the Momentum advancing below its midline. The pair needs to advance and stabilize above the 1.1320 level to shrug off the bearish tone, at least in the near term.
Support levels: 1.1210 1.1175 1.1130
Resistance levels: 1.1275 1.1320 1.1360
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.