EUR/USD Current price: 1.1600
- Markit final September PMIs indicate slowing rates of growth in the EU.
- Wall Street is poised to open with modest gains, although the market mood is cautious.
- EUR/USD resumes its decline and could break below the year low at 1.1562.
The EUR/USD pair battles the 1.1600 level, with the greenback trading mixed across the FX board, as a generally cautious stance persists. Demand for the American currency is limited, with rising government bond yields hinting at an improving market’s mood. Asian equities edged firmly lower, but European ones stand in the green, lifting US futures.
Data-wise, Markit released the final readings of its September Services PMIs. Most of the European indexes were upwardly revised, with the German index confirmed at 56.2. Nevertheless, the official report notes that the growth rate has slowed notably from those seen in July and August. Also, the EU services index was slightly better than anticipated, printing at 56.2, although indicating moderated growth amid supply issues.
The Union published the August Producer Price Index, which was up 1.1% MoM and 13.4% YoY, missing expectations. As for the US, the country has just released the August Goods and Services Trade Balance, which posted a wider than anticipated deficit of $73.3 billion.
During the upcoming hours, Markit will publish the US Services PMI while the country will unveil the official ISM index, foreseen at 60 in September, down from 61.7 in August.
EUR/USD short-term technical outlook
The EUR/USD pair retreated from around the 23.6% retracement of the latest daily slump at 1.1645, the immediate resistance level. The daily chart shows that technical indicators resumed their declines near oversold readings, while a bearish 20 SMA stands well above the current level and below the longer ones, all of which reflects increased selling interest.
The 4-hour chart offers a neutral-to-bearish stance as the pair is hovering around a flat 20 SMA, while the Momentum indicator turned lower around its midline as the RSI indicator consolidates around 43. The pair has set a yearly low at 1.1562, with a break below the level exposing the 1.1470 price zone.
Support levels:1.1560 1.1520 1.1475
Resistance levels: 1.1645 1.1680 1.1725
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
AUD/USD clings to recovery gains above 0.6200, focus shifts to US ISM PMI
AUD/USD sustains the recovery from two-year troughs, holding above 0.6200 in Friday's Asian trading. The pair finds footing amid a pause in the US Dollar advance but the upside appears elusive as markets turn cautious amid China concerns and ahead of US ISM PMI data.
USD/JPY eases toward 157.00 as risk sentiment sours
USD/JPY is extending pullback from multi-month high of 158.07 set on Thursday. The pair drops toward 157.00 in the Asian session on Friday, courtesy of the negative shift in risk sentiment. Markets remain concerned about China's econmic health and the upcoming policies by the Fed and the BoJ.
Gold price appreciates amid Biden's discussions about potential strikes on Iran
Gold price edges higher for the fourth consecutive session on Friday, building on a stellar performance in 2024 with gains exceeding 27%, the metal’s best annual return since 2010. This sustained rally is attributed to strong safe-haven demand amid persistent geopolitical tensions in the Middle East and the prolonged Russia-Ukraine conflict.
Could XRP surge to new highs in January 2025? First two days of trading suggest an upside bias
Ripple's XRP is up 7% on Thursday, extending its rally that began during the New Year's Day celebration. If long-term holders continue their recent accumulation, XRP could overcome the $2.9 resistance level and aim for a new all-time high.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
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.