EUR/USD Current price: 1.0664
- Upbeat European PMIs provided near-term support to the Euro.
- US S&P Global PMIs could set the tone during American trading hours.
- The EUR/USD has a limited bullish potential, can still pierce the 1.0600 threshold.
The EUR/USD pair gained some ground on Tuesday, peaking at 1.0694 during European trading hours. The pair eased from such a level, but retains modest gains and trade at around 1.0670. According to provisional survey data, the Euro benefited from upbeat local data, as the Hamburg Commercial Bank (HCOB) and S&P Global Purchasing Managers Indexes (PMIs) showed business activity in the euro area grew at the fastest rate for nearly a year in April.
Growth is modest but still brings hope as the seasonally adjusted EU Composite PMI Index rose from 50.3 in March to 51.4 in April. According to the official report, the German private sector also returned to growth at the start of the second quarter. The Composite PMI Index moved back above 50.0 for the first time in ten months in April, printing at 50.5 following 47.7 in March. In both economies, manufacturing remains the weakest leg, as it held in contraction territory.
S&P Global will release the preliminary estimates of the United States (US) PMIs after Wall Street’s opening, while the country will publish March New Home Sales and the April Richmond Fed Manufacturing Index.
Financial markets await first-tier US data, scheduled for later in the week. The country will release the preliminary estimate of the Q1 Gross Domestic Product on Thursday and the March Personal Consumption Expenditures (PCE) Price Index on Friday.
EUR/USD short-term technical outlook
The daily chart for EUR/USD shows the pair surpassed last week’s high by a few pips and adds ground for a third consecutive day. Nevertheless, the bullish potential remains limited. The Relative Strength Index (RSI) indicator stands directionless around 39, while the Momentum indicator turned south after failing to reconquer positive ground. Finally, the pair keeps developing below all its moving averages, with the 20 Simple Moving Average (SMA) heading firmly south and providing dynamic resistance at around 1.0740.
The 4-hour chart offers a neutral stance. Technical indicators head nowhere just above their midlines, losing the modest momentum seen earlier in the day. A flat 20 SMA provides near-term support at around 1.0650, while the 100 and 200 SMAs head firmly south, well above the current level. The pair bottomed for the year at 1.0600, the level to watch for a steeper bearish run.
Support levels: 1.0645 1.0600 1.0570
Resistance levels: 1.0700 1.0740 1.0745
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 resumes slide below 1.0500
EUR/USD gained modest upward traction ahead of Wall Street's opening but resumed its slide afterwards. The pair is under pressure in the American session and poised to close the week with losses near its weekly low at 1.0452.
GBP/USD nears 1.2600 as the US Dollar regains its poise
Disappointing macroeconomic data releases from the UK put pressure on the British Pound, yet financial markets are all about the US Dollar ahead of the weekly close. Demand for the Greenback increased in the American session, pushing GBP/USD towards 1.2600.
Gold pierces $2,660, upside remains capped
Gold (XAU/USD) puts pressure on daily lows and trades below $2,660 on Friday’s early American session. The US Dollar (USD) reclaims its leadership ahead of the weekly close, helped by rising US Treasury yields.
Broadcom is the newest trillion-dollar company Premium
Broadcom (AVGO) stock surged more than 21% on Friday morning after management estimated on Thursday’s earnings call that the market for customized AI accelerators might reach $90 billion in fiscal year 2027.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.