- EUR/USD trades marginally higher on the day above 1.0500 on Monday.
- Flash PMI data from Germany, the Eurozone and the US will be scrutinized by investors.
- The pair could extend its recovery once it flips 1.0520 into support.
EUR/USD snapped a five-day losing streak on Friday but closed the previous week in negative territory. The pair clings small daily gains above 1.0500 as investors await macroeconomic data releases.
Euro PRICE Last 7 days
The table below shows the percentage change of Euro (EUR) against listed major currencies last 7 days. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.60% | 0.87% | 2.43% | 0.49% | 0.29% | 1.07% | 1.49% | |
| EUR | -0.60% | 0.28% | 1.95% | -0.02% | -0.21% | 0.55% | 0.97% | |
| GBP | -0.87% | -0.28% | 1.49% | -0.30% | -0.49% | 0.27% | 0.68% | |
| JPY | -2.43% | -1.95% | -1.49% | -1.91% | -1.99% | -1.45% | -0.84% | |
| CAD | -0.49% | 0.02% | 0.30% | 1.91% | -0.15% | 0.57% | 0.99% | |
| AUD | -0.29% | 0.21% | 0.49% | 1.99% | 0.15% | 0.77% | 1.18% | |
| NZD | -1.07% | -0.55% | -0.27% | 1.45% | -0.57% | -0.77% | 0.40% | |
| CHF | -1.49% | -0.97% | -0.68% | 0.84% | -0.99% | -1.18% | -0.40% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
The European Central Bank's (ECB) dovish tone and the broad-based US Dollar (USD) strength forced EUR/USD to stay on the back foot last week. The modest improvement seen in risk mood helps the pair hold its ground in the European morning on Monday.
Preliminary December HCOB Manufacturing and Services Purchasing Managers Index (PMI) data from Germany and the Eurozone will be watched closely by market participants. In case Services PMI rises above 50, either in the Eurozone or Germany, and reflect an expansion in the sector's economic activity, the immediate reaction could help the Euro find demand.
In the second half of the day, S&P Global PMI data will be featured in the US economic docket. If the Composite PMI unexpectedly drops below 50, the USD could come under renewed selling pressure.
Nevertheless, investors could opt to remain on the sidelines ahead of the Federal Reserve's (Fed) monetary policy announcements on Wednesday.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart rose slightly above 50, reflecting sellers' hesitancy. EUR/USD could face immediate resistance at 1.0520 (100-period Simple Moving Average (SMA), 50-period SMA, Fibonacci 23.6% retracement of the latest downtrend). If the pair stabilizes above this level and confirms it as support, it could target 1.0600 (Fibonacci 38.2% retracement) next.
On the downside, supports could be seen at 1.0440 (static level), 1.0400 (end-point of the latest downtrend) and 1.0330 (November 22 low).
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day, according to data from the Bank of International Settlements. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% of all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
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 1.0500 ahead of US PMI data
EUR/USD fluctuates in a narrow channel at around 1.0500 on Monday after EU PMI data came in better than expected. ECB President Lagarde reiterated that they will continue to cut rates if data confirm disinflation is on track. Market focus shifts to US PMI data.
Gold clings to mild gains above $2,650 as markets gear up for Fed
Gold opens the week on a moderately positive tone and trades above $2,650, favored by a mild US Dollar (USD) reversal amid lower US Treasury yields. The precious metal, however, is still close to recent lows following a 2.5% sell-off late last week.
Bitcoin rises to new all-time of $106,600, then corrects as markets focus on Fed
Bitcoin price retreats on Monday after reaching a new all-time high (ATH) of $106,648 in the early Asian session. The main factor impacting BTC price this week is likely to be the decision of the US Fed on interest rates on Wednesday.
Five fundamentals for the week: Fed dominates the last full and busy trading week of the year Premium
Christmas is coming – but there's a high likelihood of wild price action before the holiday season begins. Central banks take center stage, and there is enough data to keep traders busy outside these critical decisions.
Five fundamentals for the week: Fed dominates the last full and busy trading week of the year Premium
Christmas is coming – but there's a high likelihood of wild price action before the holiday season begins. Central banks take center stage, and there is enough data to keep traders busy outside these critical decisions.
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.