The EUR/USD pair extends its range-trade on 1.11 handle into a fourth day today, with a break on either side eagerly awaited, as investors gear up for the first major economic release of the week – Euro zone flash manufacturing and services PMI reports.
EUR/USD ignores risk-recovery
The main currency pair found buyers once again near 1.1140 levels in early Asia, and attempted a fresh bounce over the last hour, in another run to regain the key support-turned resistance of 1.1160 levels.
However, the bulls are seen struggling to extend the break higher, as Treasury yields across the curve are seen regaining ground, which could provide the much-need impetus to the USD bulls.
Moreover, a slight turnaround in risk conditions amid a technical bounce seen in oil prices and higher Asian equities, could also keep the recovery mode capped in the funding currency Euro.
The Asian markets cheer some optimism derived from the UK May’s offer to the EU citizens at the Brussels Summit, while a version of a healthcare plan released by the US Senate late-Thursday, also add to the risk recovery.
All eyes now remain on a flurry of manufacturing and services PMIs due to be reported from across the Euro area economies, while the US PMIs and new homes sales data, followed by the FOMC member Powell will wrap a data-light week.
EUR/USD Technical Levels
Franco Shao at ForexCycle explains: “EURUSD moved sideways in the bottom of the trading range between 1.1109 and 1.1295. A clear break below 1.1109 support will indicate that the uptrend from 1.0569 (Apr 10 low) had completed at 1.1295 already, then the pair will find the next support level at around 1.0800.”
“On the upside, as long as 1.1109 support holds, the fall from 1.1295 could be treated as consolidation of the uptrend, one more rise towards 1.1450 is still possible after the consolidation,” Franco adds.
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 holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.