The EUR/USD pair edged higher in relatively quiet trading on Friday and recovered a part of the previous session's slump to near two-week lows, triggered by disappointing German/Euro-zone manufacturing PMI numbers. The uptick, however, lacked any strong bullish conviction amid resurfacing growth concerns in the Euro area, though remained supported by a slight disappointment from the US housing market data. In fact, housing starts for the month of March fell 0.3% to an annualized rate of 1.139 million while building permits fell 1.7% to 1.269 million annualized rate.
The pair finally settled with modest daily gains and now seems to have stabilized just below mid-1.1200s. The pair oscillated in a narrow trading band through the Asian session on Monday and with most major European markets closed in observance of Easter Monday, the trading activity is expected to remain subdued. Later during the early North-American session, the only release of existing home sales data from the US will be looked upon for some short-term trading opportunities.
Looking at the technical picture, the pair last week finally confirmed a near-term bearish breakthrough a short-term ascending trend-channel and hence, remains vulnerable to aim back towards challenging the 1.1200 round figure mark en-route YTD lows, around the 1.1175 region. The latter nears a support marked by 61.8% Fibonacci retracement level of the 1.0341-1.2510 up-move and should act as a key pivotal point for the pair's next leg of a directional move.
On the flip side, any subsequent recovery attempts might now confront some fresh supply near the 1.1275-80 region and seem more likely to remain capped near the trend-channel support break-point, currently near the 1.1300 round figure mark. Given the recent repeated failures to sustain at higher levels, bullish acceptance above the 1.1300 handle would negate the near-term bearish bias and prompt some aggressive short-covering move.
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 modest gains above 1.0650 ahead of US data
EUR/USD trades modestly higher on the day above 1.0650 in the early American session on Tuesday. The upbeat PMI reports from the Eurozone and Germany support the Euro as market focus shift to US PMI data.
GBP/USD extends rebound, tests 1.2400
GBP/USD preserves its recovery momentum and trades near 1.2400 in the second half of the day on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.