• EUR/USD is oscillating around 0.9840, weakness seems favored after hawkish Fed policy.
  • A mixed performance is expected on the US PMI front while Eurozone PMI will slip further.
  • ECB’s economic bulletin sees a growth rate in 2022 at 3.1%.

The EUR/USD pair has turned sideways around 0.9840 after rebounding from near the critical support of 0.9813 in the early Tokyo session. A rebound move after multiple tests of Wednesday’s low indicates the strength of the support. It will be worth watching how far the asset can plunge after surrendering the above-mentioned support.

The impact of the harsh-than-predicted tone adopted by the Federal Reserve (Fed) chair Jerome Powell while guiding over the peak of interest rates is going to stay for a tad longer period. An escalation in interest rate projections by a whooping difference from 3.8% to 4.6% is sufficient to accelerate volatility in the economy. For achieving price stability in the economy, the rate hikes will result in a loss of job opportunities, demand for housing and durable goods, and growth rate projections.

Going forwards, the release of the S&P Global PMI data will remain in focus. The Manufacturing PMI is seen lower at 51.1 vs. the prior release of 51.5. While the Services PMI will improve to 45.0 against the prior print of 43.7.

On the Eurozone front, escalating fears of a nuclear attack by Russian leader Vladimir Putin are forcing the market veterans to extend the downside targets for the shared currency bulls. Apart from that, the release of the European Central Bank (ECB)’s Economic Bulletin sees the economy to grow by 3.1% in 2022, 0.9% in 2023, and 1.9% in 2024.

The Eurozone Manufacturing PMI is expected to land at 48.7, lower than the prior release of 49.6. Also, the Services PMI will shift lower to 49.0 vs. the former figure of 49.6.

EUR/USD

Overview
Today last price 0.9837
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 0.9837
 
Trends
Daily SMA20 0.9985
Daily SMA50 1.0091
Daily SMA100 1.0299
Daily SMA200 1.0711
 
Levels
Previous Daily High 0.9976
Previous Daily Low 0.9813
Previous Weekly High 1.0198
Previous Weekly Low 0.9945
Previous Monthly High 1.0369
Previous Monthly Low 0.9901
Daily Fibonacci 38.2% 0.9876
Daily Fibonacci 61.8% 0.9914
Daily Pivot Point S1 0.9775
Daily Pivot Point S2 0.9713
Daily Pivot Point S3 0.9612
Daily Pivot Point R1 0.9938
Daily Pivot Point R2 1.0039
Daily Pivot Point R3 1.0101

 

 

 

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