EUR/USD Current Price: 1.0777

  • Market attention remains on banking developments and government support.
  • The German IFO survey beat expectations in March, underpinning the better mood.
  • EUR/USD lacks bullish strength but holds above strong static support at 1.0745.

The EUR/USD pair trades around 1.0770, unchanged on Monday despite a better market mood undermining American dollar demand. The better sentiment is linked to news related to financial stability, as the US government provided additional support to the local financial system. Over the weekend, the Federal Deposit Insurance Corporation (FDIC) announced First Citizens BancShares Inc bought all the loans and deposits of SVB and gave the FDIC equity rights in its stock worth as much as $500 million in return.

The banking sector turmoil, however, is far from over. German Deutsche Bank shares suffered a sell-off on Friday. Most analysts noted there’s no real reason to distrust the German bank, yet the situation clearly reflects the market’s sensibility. Deutsche Bank bounced alongside battered Credit Suisse on Monday, backing the improved sentiment. European indexes trade in the green, pushing Wall Street’s futures higher.

Data-wise, Germany published the IFO survey on Business Climate, which improved in March to 93.3 from 91.1 in the previous month, as the Current Assessment and Expectation also came in better than anticipated. The US will publish the Dallas Fed Manufacturing Business Index, foreseen at -10.9 in March after posting -13.5 in February.

EUR/USD short-term technical outlook

The daily chart for EUR/USD shows that the pair holds at the lower end of Friday’s range. Still, it met buyers ahead of 1.0745, a strong static support level, representing the 61.8% retracement of the 2022 yearly decline. At the same time, technical indicators remain within positive levels, with the Momentum heading north after bouncing around its midline and the Relative Strength Index (RSI) consolidating at 55. Finally, moving averages continue to advance below the current level, reflecting buyers’ dominance.

In the near term, and according to the 4-hour chart, however, the bullish potential seems limited. The pair trades below a flat 20 Simple Moving Average (SMA), providing dynamic resistance at 1.0815. The 100 SMA, in the meantime, heads marginally higher below the current level, just above a flat 200 SMA. The Momentum indicator maintains its bearish slope well into negative territory, while the RSI heads nowhere around 50.

Support levels: 1.0745 1.0700 1.0660

Resistance levels: 1.0815 1.0850 1.0890

View Live Chart for the EUR/USD        

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


Recommended Content

Editors’ Picks

EUR/USD recovers above 1.0550 on renewed US Dollar weakness

EUR/USD recovers above 1.0550 on renewed US Dollar weakness

EUR/USD rebounds above 1.0550 in the European trading hours on Monday. A positive shift in risk sentiment curbs the safe-haven demand for the US Dollar finds fresh haven, offering some comfort to the pair. amid a data-light calendar. 

EUR/USD News
GBP/USD rebounds toward 1.2800 as risk appetite returns

GBP/USD rebounds toward 1.2800 as risk appetite returns

GBP/USD picks up fresh bids and jumps toward 1.2800 in the European session on Monday. Markets cheer improving risk sentiment as traders shrug off geopolitical risks and reposition ahead of the US inflation test, dragging the US Dollar lower across the board. 

GBP/USD News
Gold price stands firm near $2,650 hurdle; modest USD strength caps the upside

Gold price stands firm near $2,650 hurdle; modest USD strength caps the upside

Gold price sticks to its positive bias through the first half of the European session, though it remains below the $2,650-2,655 supply zone and remains confined in a familiar range held over the past two weeks or so. The USNFP report released on Friday reaffirmed bets that the Fed will lower borrowing costs in December.

Gold News
Pepe meme coin hits new all-time high, with market cap surpassing $11 billion

Pepe meme coin hits new all-time high, with market cap surpassing $11 billion

Pepe (PEPE) soars to a new all-time high (ATH) of $0.0000275 on Monday after an 18% rally over the past week. Rising open interest signals fresh market buying and the technical outlook indicates a potential climb toward $0.0000336.

Read more
A big week for central banks

A big week for central banks

This week’s CPI data will be the last piece of the puzzle before the Fed meets next week. The ECB, BoC, RBA and the SNB will announce their latest policy verdict throughout this week.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Majors

Cryptocurrencies

Signatures