EUR/USD Current price: 1.1040
- Tepid European data undermined demand for the Euro during London trading hours.
- United States services output under the spotlight early in the American session.
- EUR/USD near-term bearish case loses steam as buyers defend 1.1000.
The EUR/USD pair remains on the bearish side on Thursday, having moved one step closer to the 1.1000 mark. The pair posted an intraday low of 1.1024 during European trading hours, with attempts to advance meeting resistance ahead of the 1.1050 mark.
European data took its toll on the Euro. The Eurozone Producer Price Index (PPI) increased by 0.6% on a monthly basis in August, according to first estimates from Eurostat, the statistical office of the European Union. The figure was higher than the 0.3% anticipated. The annual PPI printed -2.3%, also surpassing expectations. Despite far from concerning, the numbers indicated an increase in price pressures at the end of the second quarter.
At the same time, the Hamburg Commercial Bank (HCOB) published the final estimates of the September Purchasing Managers Indexes (PMIs) with modest upward revisions to services output, lifting the final Composite PMI. The EU Services PMI was confirmed at 51.4, while the Composite PMI resulted at 49.6. Still, “the euro area economy suffered a fresh setback at the end of the third quarter as total business activity decreased for the first time since February,” according to the official report.
Across the pond, the United States (US) published the Challenger Job Cuts report, which showed that US-based employers announced 72,821 cuts in September, a 4% decrease from the 75,891 cuts announced one month prior. Additionally, Initial Jobless Claims for the week ended September 27, which rose by 225K, worse than the 220K anticipated.
Following Wall Street’s opening, S&P Global will release the September US Services PMI and the Composite PMI. Later on, the focus will shift to the ISM Services PMI for the same month. By the end of the day, a couple of Federal Reserve (Fed) officials will hit the wires.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for the EUR/USD pair is neutral to bearish. The Momentum indicator stands just below the 100 line, lacking clear directional strength. At the same time, the 20-day Simple Moving Average (SMA) is positioned above both the 100-day and 200-day SMAs, with the price hovering in between. However, the recent movements of the 20 SMA show a slight decline, which may indicate a waning short-term bullish momentum. EUR/USD is trading at 1.1029, with immediate resistance at 1.1101, closely aligned with the 20-day SMA, which could act as a barrier to further upward movement. On the downside, an ascendant trend line level at 1.0970 serves as a key support level, providing a floor for the currency pair.
In the 4-hour chart, the Momentum indicator currently stands at 99, signaling a bearish potential. Concurrently, the 20-period Simple Moving Average (SMA) is positioned at 1.1078, which remains below both the 100-period SMAs. This alignment underscores the dominance of sellers in the current market structure, reinforcing the bearish outlook. Despite the prevailing bearish indicators, the slight uptick in Momentum hints at a possible weakening of the downward momentum. The 20 SMA consistent position below the longer-term averages signifies sustained selling pressure, yet the potential reversal in Momentum could pave the way for a shift in market sentiment.
Support levels: 1.1020 1.0980 1.0935
Resistance levels: 1.1050 1.1100 1.1140
(The technical analysis section of this story was partially created using an Artificial Intelligence tool and reviewed by an editor.)
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
Gold gives away part of its earlier advance to $3,500
Gold retreated from its earlier record top of $3,500 per troy ounce as overbought signals and the rebound in the US Dollar seem to have prompted buyers to take a breather. Meanwhile, all the attention remains on the Trump-Powell effervescence and upcoming comments from Fed officials.
EUR/USD drops to daily lows near 1.1470, Dollar regains balance
EUR/USD slips back below the 1.1500 mark, trimming part of Monday’s rally as the Greenback picks up some upside momentum following recent multi-year losses. In the meantime, markets remain cautious in light of President Trump’s criticism of Fed Chair Jerome Powell and its potential implications for the US markets.
GBP/USD looks consolidative below 1.3400 on USD buying
GBP/USD drifts within a narrow band below the 1.3400 hurdle as the Greenback’s decent rebound continues to gather steam on Tuesday. Still, lingering worries over a US economic slowdown and doubts about the Fed’s independence are expected to limit Cable’s downside potential.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.