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
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 rises toward 1.0600 on market optimism
EUR/USD trades in positive territory, eyeing 1.0600 in the early European session on Tuesday. The pair cheers the market's optimism over likely Chinese stimulus, which caps the US Dollar upside. However, gains could be limited by increased dovish bets surrounding the ECB.
GBP/USD regains 1.2750 amid modest US Dollar weakness
GBP/USD regains traction above 1.2750 in the European morning on Tuesday. The risk-sensitive pair capitalizes on a better mood, courtesy of China's stimulus hope, and broad US Dollar softness. Traders could turn cautious heading toward Wednesday's US inflation test.
Gold price clings to gain around $2,670/two-week top, short-term bullish bias remains
Gold price climbs back closer to a two-week high and draws support from a combination of factors. Geopolitical risks continue to benefit the safe-haven XAU/USD amid December Fed rate cut bets. The technical setup now seems tilted in favor of bulls and supports prospects for additional gains.
DOGE and SHIB leveraged traders wiped out: Over $108 million in liquidated
Dogecoin and Shiba Inu prices continue to edge down on Tuesday after falling more than 10% on Monday. The recent downturn at the start of this week has liquidated over $108 million from these dog theme-based memecoins in the last 24 hours.
Bitcoin Price Forecast: Amazon shareholders advocate for BTC adoption amid Microsoft’s investment vote
Bitcoin edges down 2.5%, trading below $98,500 on Monday, after rallying 4% and reaching a new all-time high of $104,088 last week. As BTC reached its $100K milestone, big corporates showed interest in the largest digital asset by market capitalization.
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.