EUR/USD Current price: 1.0682
- The German IFO Survey surprised positively in April, all components improved.
- March US Durable Goods Orders missed expectations despite improving on a monthly basis.
- EUR/USD seems poised to resume its slide after a corrective advance.
The EUR/USD pair retreated from 1.0713, a fresh weekly high, and trades at around 1.0680 ahead of Wall Street’s opening. The broad US Dollar’s weakness, triggered by softer-than-anticipated United States data on Tuesday, extended throughout the first half of the day. Meanwhile, stock markets advanced, adding pressure on the USD. The tech sector led the way higher and will likely retain the attention in the American session.
During the European session, the Euro found near-term support in German data as the April IFO Survey showed the Business Climate improved to 89.4 from 87.9 in March. The assessment of the current situation also improved by more than anticipated, up to 88.9, while the Expectations sub-component hit 89.9, also beating expectations.
The pair retreated modestly before the release of United States (US) Durable Goods Orders remaining stable. The report showed orders were up 2.3% in March, missing the 2.5% anticipated by market participants. Furthermore, the February figure was downwardly revised to 1.5% from a previous estimate of 2.2%.
US data missed for a second consecutive day, but are those terrible news? Somehow, the worse-than-anticipated growth-related figures could build the case for sooner-than-anticipated rate cuts. If that’s the case or not, it will likely be more straightforward following upcoming US data. The country will unveil the first estimate of the Q1 Gross Domestic Product (GDP) next Thursday, which is expected to show that the economy grew at an annualized pace of 2.5% in the three months to March. Also, the US will publish the March Personal Consumption Expenditures (PCE) Price Index on Friday, the Federal Reserve’s (Fed) favorite inflation gauge.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair seems to have completed its corrective advance and is poised to resume its decline. The pair trades near a daily low of 1.0677, and technical indicators in the daily chart maintain their downward slopes within negative levels, in line with dominant selling interest. Additionally, the pair trades below all its moving averages. The 20 Simple Moving Average (SMA) provides resistance at around 1.0735 while extending its slide below the longer one, also reflecting sellers’ dominance.
In the near term, and according to the 4-hour chart, the outlook is neutral. EUR/USD is a handful of pips above a mildly bullish 20 SMA, while a bearish 100 SMA provides resistance in the 1.0730 price zone, reinforcing the relevance of the area. At the same time, the Momentum indicator heads south just above its 100 line, falling short of confirming an upcoming slide. Finally, the Relative Strength Index (RSI) indicator stands pat at around 55. The pair still needs to break through the 1.0600 mark to confirm a bearish extension, although it would hardly happen ahead of upcoming US first-tier data.
Support levels: 1.0645 1.0600 1.0570
Resistance levels: 1.0700 1.0740 1.0785
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 extends its upside above 0.6600, eyes on RBA rate decision
The AUD/USD pair extends its upside around 0.6610 during the Asian session on Monday. The downbeat US employment data for April has exerted some selling pressure on the US Dollar across the board. Investors will closely monitor the Reserve Bank of Australia interest rate decision on Tuesday.
EUR/USD holds positive ground above 1.0750 ahead of Eurozone PMI, PPI data
The EUR/USD trades in positive territory for the fourth consecutive day near 1.0765 on Monday during the early Asian trading hours. The softer US Dollar provides some support to the major pair.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.