EUR/USD rebounds above 1.0970 from weekly lows after US data
- US JOLTS comes in below expectations while Factory Orders rise 0.9% versus the expected 0.8%.
- The FOMC meeting kicks off, with a 25 basis points rate hike already priced in.
- EUR/USD turns flat for the day amid a weaker US Dollar.
The EUR/USD erased losses after the release of US economic data, rising from its weekly lows to levels above 1.0970. The pair is now flat for the day, ending a three-day negative streak, ahead of crucial central bank meetings.
Mixed US data after EZ inflation, ahead of FOMC
The final reading of US Factory Orders showed a rise of 0.9% in March, slightly above the market consensus of 0.8%. The JOLTS report showed that "the number of job openings decreased to 9.6 million on the last business day of March," softer than the expected 9.7 million.
The US Dollar lost momentum after the reports, and EUR/USD rebounded rising more than 25 pips. The US Dollar Index is up for the day, trading at 102.25. US yields have plunged to new lows, with the US 10-year yields falling to 3.47% and the 2-year to 4.04%.
Attention now turns to the central banks. The FOMC will announce its decision on Wednesday, with a 25 basis point rate hike already priced in, while the European Central Bank (ECB) will have its meeting on Thursday. Prior to the FOMC, ADP will release its employment report on Wednesday.
Short-term outlook
The EUR/USD pair currently holds a bearish bias in the short term and is challenging an important support level around 1.0950. It bottomed on Tuesday at 1.0941, the lowest level since April 21, but has since bounced back toward 1.0980.
If the Euro recovers levels above 1.0970, it could change the intraday bias to positive; resistance levels above are located at 1.0990 and 1.1005. Under 1.0950, further weakness seems likely, with the next crucial support level at 1.0930.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
