EUR/USD Current price: 1.0842
- Eurozone Consumer Confidence improved in March, according to Sentix.
- The European Central Bank will announce its monetary policy decision next Thursday.
- EUR/USD holds on to modest intraday gains, lacks momentum despite a better mood.
The EUR/USD pair trades marginally higher on Monday, hovering around the 1.0850 level ahead of Wall Street’s opening. The market mood is in better shape amid the good performance of Asian shares led by the tech sector, although European indexes lack momentum and trade around their opening levels, leading to some modest gain in US futures.
A data-packed week starts in slow-motion on that front, as the United States (US) macroeconomic calendar will offer no figures, but there is a scheduled speech from Federal Reserve (Fed) Patrick Timothy Harker, President of the Federal Reserve Bank of Philadelphia. Earlier in the day, the Eurozone published March Sentix Investor Confidence, which improved to -10.5 from -12.9 in February.
In the upcoming days, the focus will shift to the European Central Bank (ECB), due to announce its monetary policy decision next Thursday, and US employment data, as the country will publish the ADP survey on job creation, the JOLTS report and the February Nonfarm Payrolls report.
EUR/USD short-term technical outlook
The EUR/USD pair keeps trading between Fibonacci levels. The upside is being limited by the 38.2% retracement of the 1.1139-1.0694 daily slide at 1.0865, while buyers defend the downside at around the 23.6% retracement at 1.0799.
Technical readings skew the risk to the upside, although the momentum is missing. Technical indicators remain above their midlines but with uneven strength. The Relative Strength Index (RSI) indicator has turned flat and is currently consolidating at around 54, while the Momentum indicator keeps advancing, suggesting absent selling interest. At the same time, all moving averages are directionless and confined to a tight range, just below the current level, in line with the absence of directional strength.
In the near term, and according to the 4-hour chart, EUR/USD is neutral-to-bullish. Moving averages stand directionless below the current level, with the 100 Simple Moving Average (SMA) converging with the mentioned Fibonacci support level. Finally, technical indicators have turned marginally lower, just above their midlines, limiting the odds for a steeper advance.
Support levels: 1.0795 1.0750 1.0700
Resistance levels: 1.0865 1.0910 1.0950
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
USD/JPY remains below 158.00 after Japanese data
Soft US Dollar demand helps the Japanese Yen to trim part of its recent losses, with USD/JPY changing hands around 157.70. Higher than anticipated Tokyo inflation passed unnoticed.
AUD/USD weakens to near 0.6200 amid thin trading
The AUD/USD pair remains on the defensive around 0.6215 during the early Asian session on Friday. The incoming Donald Trump administration is expected to boost growth and lift inflation, supporting the US Dollar (USD). The markets are likely to be quiet ahead of next week’s New Year holiday.
Gold depreciates amid light trading, downside seems limited due to safe-haven demand
Gold edges lower amid thin trading following the Christmas holiday, trading near $2,630 during the Asian session on Friday. However, the safe-haven asset could find upward support as markets anticipate signals regarding the United States economy under the incoming Trump administration and the Fed’s interest rate outlook for 2025.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.