EUR/USD Current price: 1.0712
- German inflation rose by less than anticipated in April, according to preliminary estimates.
- Market participants await US employment-related data and the Federal Reserve’s decision.
- EUR/USD lacks apparent directional strength, bullish potential limited.
The EUR/USD pair retains modest intraday gains on Monday, trading around the 1.0710 level. The US Dollar gapped higher at the weekly opening but quickly changed course amid a better market mood. Asian stock markets posted substantial gains, helping EUR/USD advance. At the same time, government bond yields retreat from their recent peaks, putting modest pressure on the USD demand.
Nevertheless, the market’s action remains restricted as investors await United States (US) employment-related figures and the Federal Reserve (Fed) monetary policy announcement spread throughout the week. The Fed is widely anticipated to keep rates on hold, while speculative interest anticipated a generally hawkish statement, given macroeconomic data suggesting slowing growth alongside persistently high inflationary pressures. On the employment front, the week will include the JOLTS Job Openings report, the ADP survey on private job creation, and the Nonfarm Payrolls (NFP) report on Friday.
Near-term, Germany released the preliminary estimate of the April Harmonized Index of Consumer Prices (HICP), which rose 2.2% YoY and 0.5% MoM, below the market expectations but higher than in March. Also, the Eurozone published April Consumer Confidence, which remained unchanged at -14.7. The American session will bring little of interest, as the US will only release the April Dallas Fed Manufacturing Business Index.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for the EUR/USD pair shows a limited bullish potential. The pair develops below all its moving averages, with selling interest aligned around the 20 Simple Moving Average (SMA), currently at 1.0725. Technical indicators, in the meantime, seesaw within negative levels, lacking clear directional strength.
The EUR/USD pair is neutral in the near term. The 4-hour chart shows technical indicators holding around their midlines, reflecting the absence of directional interest. At the same time, a mildly bullish 20 SMA converges with a bearish 100 SMA just above the current level, with the pair unable to clear the congestion zone.
Support levels: 1.0690 1.0645 1.0600
Resistance levels: 1.0730 1.0785 1.0810
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 steady near 1.0500 ahead of FOMC Minutes
EUR/USD trades marginally higher on the day near 1.0500. The US Dollar struggles to preserve its strength amid a modest improvement seen in risk sentiment, helping EUR/USD hold its ground before the Fed publishes the minutes of the November policy meeting.
GBP/USD struggles to hold above 1.2600
GBP/USD loses its traction and trades below 1.2600 after rising above this level earlier in the day. Nevertheless, the pair's losses remain limited as the US Dollar struggles to find demand following mixed data releases. Markets await FOMC Minutes.
Gold stabilizes above $2,600 after sell-off on hope of ceasefire in Lebanon
Gold fluctuates above $2,600 on Tuesday after sliding almost three percent – a whopping $90 plus – on Monday due to rumors Israel and Hezbollah were on the verge of agreeing on a ceasefire. Whilst good news for Lebanon, this was not good news for Gold as it improved the outlook for geopolitical risk.
Trump shakes up markets again with “day one” tariff threats against CA, MX, CN
Pres-elect Trump reprised the ability from his first term to change the course of markets with a single post – this time from his Truth Social network; Threatening 25% tariffs "on Day One" against Mexico and Canada, and an additional 10% against China.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.