Slobodan Drvenica
Windsor Brokers
The Euro fell across the board, hit by weaker than expected PMI data from the biggest Eurozone economies.
German data were in focus today, with Manufacturing PMI falling below expectations in Apr (44.5 vs 45.0 f/c).
Also, French Manufacturing PMI fell below 50 threshold (Apr 49.6 vs 50 f/c) and EU Manufacturing PMI also missed in Apr (47.8 vs 47.9 f/c).
Data signal contraction, especially in the biggest EU economy – Germany, with better than expected Services PM )Germany, France) producing no positive impact.
The single currency was down 0.3% against the dollar and yen and lost approx. 0.15% against pound after data release.
Fresh weakness hit one-week low at 1.1243, marking over 50% retracement of 1.1183/1.1323 upleg) and generated initial signal that corrective phase from 1.1183 might be over.
Falling thick daily cloud continues to weigh, as bullish momentum is fading and daily MA’s turning to bearish setup.
Daily close below broken pivotal support at 1.1270 (10SMA / Fibo 38.2% of 1.1183/1.1323) would add to negative signals, while extension and close below 1.1237 (Fibo 61.8%) is needed to confirm reversal and lower platform at 1.1323.
Daily cloud base (1.1295) and falling 55SMA (1.1304) remain key barriers.
Res: 1.1270; 1.1295; 1.1304; 1.1316
Sup: 1.1253; 1.1243; 1.1237; 1.1216
Interested in EURUSD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.