EUR/USD fails to hold on to recovery gains, plummets below 1.0800

  • USD strength continues to dominate FX markets on Thursday.
  • Manufacturing activity in Philadelphia area expands at a robust pace.
  • Consumer Confidence in euro area improves in February. 

The EUR/USD pair advanced to a daily high of 1.0820 during the American session but erased its gains in a rapid fashion in the last hour as the greenback continues to capitalize on risk-off flows. As of writing, the pair was trading at 1.0790, erasing 0.12% on a daily basis.

After climbing to a fresh multi-year high of 99.91, the US Dollar Index has gone into a consolidation phase in the second half of the day and retreated to 99.70 area. However, the sharp drop witnessed in the major equity indexes in the US allowed the USD to gather strength and lifted the index to 99.90 area, once again.

Risk sentiment remains primary market driver

In the meantime, the data published by the Federal Reserve Bank of Philadelphia revealed that the manufacturing activity in the Philly region expanded at a strong pace in February to remind investors of the US economy's resilience.

On the other hand, the European Commission's preliminary data revealed that the Consumer Confidence Index in February improved to -6.6 from -8.1 to come in better than the market expectation of -8.2 but the positive impact of the upbeat data on the euro was limited.

On Friday, the IHS Markit will publish the advanced Manufacturing and Services PMI data for both the eurozone and the US. The Eurostat will release the CPI data for the euro area as well.

Technical levels to watch for


Today last price 1.0791
Today Daily Change -0.0019
Today Daily Change % -0.18
Today daily open 1.081
Daily SMA20 1.0955
Daily SMA50 1.1062
Daily SMA100 1.1063
Daily SMA200 1.1109
Previous Daily High 1.081
Previous Daily Low 1.0782
Previous Weekly High 1.0958
Previous Weekly Low 1.0827
Previous Monthly High 1.1225
Previous Monthly Low 1.0992
Daily Fibonacci 38.2% 1.0799
Daily Fibonacci 61.8% 1.0793
Daily Pivot Point S1 1.0792
Daily Pivot Point S2 1.0773
Daily Pivot Point S3 1.0764
Daily Pivot Point R1 1.0819
Daily Pivot Point R2 1.0829
Daily Pivot Point R3 1.0847



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