EUR/USD Current price: 1.0751
- German inflation eased from a year earlier in March, according to preliminary estimates.
- United States employment-related data and Fed speakers flooding the American session.
- EUR/USD bounced from 1.0724, a fresh one-month low, retains the bearish stance.
The EUR/USD pair bounced modestly from a fresh one-month low of 1.0724 posted in the European session, currently hovering around 1.0750 ahead of Wall Street’s opening. The US Dollar preserves its strength across the FX board but paused its rally ahead of United States (US) employment-related data and a batch of Federal Reserve (Fed) officials speakers.
The USD surged in thin trading on Monday as investors rushed to price in holiday news. On Friday, the US released the core Personal Consumption Expenditures (PCE) Price Index, which was confirmed at 2.8% YoY in February, matching January’s reading. Additionally, Fed Chairman Jerome Powell delivered some interesting comments on monetary policy, remarking that, with inflation still above target and the economy growing strongly, policymakers are in no rush to trim interest rates.
Demand for the USD escalated following the release of the ISM Manufacturing PMI, which unexpectedly surged to 50.3 in March after sixteen months in a row in contraction territory.
The European session has been quite busy in terms of data releases. The Hamburg Commercial Bank (HCOB) unveiled the final March Manufacturing PMIs for the Eurozone, which suffered modest upward revisions. The German index was confirmed at 41.9, while the EU final figure was 46.1. Despite the revisions, the index continued to indicate economic contraction.
Meanwhile, Germany published the preliminary estimate of the March Harmonized Index of Consumer Prices (HICP). Annualized inflation was 2.3% YoY, easing from 2.7% the previous month. The monthly gain was 0.6%, matching February’s reading.
The US will publish February Factory Orders and JOLTS Job Openings for the same month, while multiple Fed speakers will be on the wires.
EUR/USD short-term technical outlook
The EUR/USD pair is technically bearish according to the daily chart, as the pair posted a lower low and a lower high while trading around its opening level. The Momentum indicator maintains its sharply bearish slope well into negative territory, while the Relative Strength Index (RSI) indicator has lost its bearish momentum but consolidates at around 36. At the same time, EUR/USD extended its slide below all its moving averages, slowly gaining bearish strength. The main bearish target is 1.0694, February’s monthly low.
The near-term picture suggests that EUR/USD may correct higher before resuming its slide, although the risk skews to the downside. Technical indicators in the 4-hour chart have recovered from their recent lows and head firmly higher, although within negative levels. Finally, a sharply bearish 20 SMA caps the upside at around 1.0770 while developing well below the longer ones.
Support levels: 1.0725 1.0690 1.0645
Resistance levels: 1.0770 1.0805 1.0840
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 holds near 1.1100, looks to post small weekly gains](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-9377516_XtraSmall.jpg)
EUR/USD holds near 1.1100, looks to post small weekly gains
EUR/USD trades near 1.1100 in the American session on Friday. Although the risk-averse market atmosphere caps the pair's upside, dovish comments from Fed officials and the disappointing US jobs report help it hold its ground.
![GBP/USD retreats to 1.3150 area after post-NFP spike](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-1178148633_XtraSmall.jpg)
GBP/USD retreats to 1.3150 area after post-NFP spike
GBP/USD turns south and declines to 1.3150 area after spiking to 1.3240 in the early American session. The negative shift seen in risk mood following the US labor market data for August helps the US Dollar stay resilient against its peers and weighs on the pair.
![Gold pulls away from near record highs, holds above $2,500](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold pulls away from near record highs, holds above $2,500
Gold came within a touching distance of a new all-time high near $2,530 as US Treasury bond yields turned south on disappointing US jobs data. The US Dollar's resilience amid a souring risk mood, however, caused XAU/USD to erase its daily gains.
![Crypto today: Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoins-37949586_XtraSmall.jpg)
Crypto today: Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs
Bitcoin, Ethereum, and XRP hover around key support levels after registering a steep correction earlier this week. TRON network’s stablecoin activity hit new highs following the release of SunPump.
![Nonfarm Payrolls expected to show modest hiring rebound in August after July’s tepid report](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/us-job-hunter-8793311_XtraSmall.jpg)
Nonfarm Payrolls expected to show modest hiring rebound in August after July’s tepid report
The Nonfarm Payrolls report is forecast to show that the US economy added 160,000 jobs in August, after creating 114,000 in July. The Unemployment Rate is likely to dip to 4.2% in the same period from July’s 4.3% reading.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.