The EUR/USD pair witnessed a fresh buying-wave in the European session, as the bulls finally broke away from the Asian consolidation phase near daily troughs.
The rebound in the spot can be partly attributed to above estimates flash readings of the German and French manufacturing PMI reports, with the German output growth reaching the strongest levels in nearly six years in March.
Additionally, broad based USD retreat in tandem with the treasury yields also aided the EUR/USD recovery. Furthermore, mixed start to the European equities weighed on the appetite for risk assets, in turn boosting the funding currency status of the Euro.
The immediate focus now remains on the Eurozone composite PMI release and FOMC member Evans speech due during the European hours, while the US durable goods data will take center stage in the NA session.
However, all eyes will be glued to the outcome of the US House vote on the Healthcare plan, which will start between 2-4PM EDT later today.
EUR/USD Technical Levels
Jim Langlands at FXCharts noted, “While the 4 hourlies are pointing lower, the dailies remain positive and although it will be difficult today, a break of 1.0830 could then see a run towards 1.0873 (8 August high) and eventually on to the 200 DMA (1.0900) and possibly higher, towards 1.0935 and eventually to 1.1000.”
“On the downside, below the Thursday low of 1.0767, minor support will be seen at the various Fibo levels from the move up from the recent 1.0490 low, beginning at 1.0745 and then at 1.0695. As before, given the positive look of the daily charts, it would appear that buying dips is the current plan but I would keep a SL placed below 1.0730, while on the topside I am looking for a break of 1.0830, hoping for a run towards 1.0900,” Jim added.
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 daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.