EUR/USD Current Price: 1.0876
- In the absence of relevant data, market’s attention remains on the US debt ceiling.
- US Federal Reserve officials will hit the wires in the American afternoon.
- EUR/USD is in a corrective advance, bears lead as long as it remains below 1.0900.
The EUR/USD pair recovers some of the ground lost last week, trading around 1.0875 ahead of the United States (US) opening. The US Dollar rallied on Friday, pushing the pair to a one-month low of 1.0847, led by a risk-off mood. In the absence of first-tier data, financial markets are focused on the US debt ceiling and the battle among lawmakers to extend it and dodge a default. President Joe Biden announced this Monday that he will meet Congressional leaders on Tuesday to continue negotiations.
On the data front, the Eurozone published March Industrial Production, which fell by more than anticipated, declining 4.1% MoM and 1.4% YoY. The May US NY Empire State Manufacturing Index printed at -31.8, much worse than the previous 10.8 and the expected -2.5. Later in the day, several Federal Reserve (Fed) speakers will be on the wires during the American session, although surprises are not expected from that side.
The market mood at the beginning of the new week is in better shape, although caution persists. European and Asian indexes stay in the green, underpinning Wall Street’s futures and weighing on the USD. At the same time, government bond yields picked up. The 10-year Treasury note currently yields 3.50%, while the 2-year note offers 4.02%.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows it remains at the lower end of Friday’s range and that it is having a hard time picking up. EUR/USD trades well below a bearish 20 Simple Moving Average (SMA), providing dynamic resistance at around 1.0980. At the same time, the longer moving averages keep advancing below the current level, although at a slower pace. Furthermore, the 100 SMA stands at 1.0800, reinforcing the psychological support level. Finally, technical indicators have turned higher, but without enough strength to support another leg higher while holding well into negative territory.
In the near term, and according to the 4-hour chart, the bounce from the recent low seems corrective. Technical indicators corrected extreme oversold conditions and maintain upward slopes but far below their midlines. Additionally, the pair develops far below all its moving averages, with the 20 SMA heading firmly south well below the longer ones. Sellers will likely appear around the 1.0900 figure, while the case for a steeper decline will be stronger on a break below 1.0745, the 61.8% retracement of the 2022 yearly decline.
Support levels: 1.0830 1.0785 1.0745
Resistance levels: 1.0895 1.0940 1.0985
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
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.