EUR/USD Current Price: 1.1005
- The coronavirus crisis continues to alter the global economic situation.
- Focus shifts to the US official march ISM Manufacturing PMI.
- EUR/USD depressed below 1.1000, yet unable to find a clear directional strength.
The American dollar extended its advance throughout the first half of the day but gave up during the last trading session. The EUR/USD pair fell to 1.0926, from where it bounced to recover the 1.1000 threshold ending the day around this last. The market’s sentiment remained depressed amid the COVID-19 pandemic taking its toll on global economic growth. The number of cases around the globe keeps rising, with the number of cases in the US above 160,000. New York is the most hit city, reporting over 1,500 deaths in the last 24 hours. Meanwhile, the situation in Europe keeps worsening, with little hopes of a soon-to-come peak in Italy and Spain. The world´s largest economies are heading or already in recession, and there’s nothing they can do about it at this time. Uncertainty remains high leaving major currencies without a clear trend.
March preliminary inflation in the EU came in at 0.7% YoY, while the core reading resulted at 1.0%, below the previous and the expected. German Gross Domestic Product was reported at 0.4% in Q4, confirming the economy was fragile ahead of the current crisis. In the US, the CB Consumer Confidence Index slumped to 120 in March from 132.6 in February, better, however than the 110 expected. This Wednesday, Markit will publish the final versions of March Manufacturing PMI for most major economies. More relevant, the US will release the official ISM Manufacturing PMI for the same month, foreseen at 45 from 50.1 in the previous month.
EUR/USD short-term technical outlook
The EUR/USD pair has briefly pierced the 38.2% retracement of its March slump but recovered above it. In the 4-hour chart, it is currently trading within a congestion of moving averages, unable to advance beyond the 20 and 100 SMA, both converging around 1.1030. Technical indicators have turned higher within neutral readings, losing their bearish strength but far from signaling further gains ahead. It seems unlikely that the pair could find a certain direction and maintain it, but so far the potential of a steeper decline remains limited by a static support area at 1.0920.
Support levels: 1.0950 1.0920 1.0880
Resistance levels: 1.1030 1.1060 1.1100
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.