EUR/USD Outlook: Euro fell across the board as weak PMI data further soured sentiment

Slobodan Drvenica Windsor Brokers

EURUSD

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

1. R3 1.1366
2. R2 1.1345
3. R1 1.132
PP 1.13
1. S1 1.1275
2. S2 1.1254
3. S3 1.1229

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.