EUR/USD Current price: 1.0824
- Manufacturing output in the Eurozone improved by more than anticipated in March.
- An upbeat market mood limits demand for the US Dollar.
- EUR/USD holds on to modest intraday gains, lacks directional momentum.
The EUR/USD pair traded as high as 1.0858 on Monday, recovering from Friday’s low at 1.0797. The market mood improved, resulting in US indexes jumping north ahead of the opening and weighing on the US Dollar (USD).
Meanwhile, the Euro (EUR) benefited from upbeat local data. The Hamburg Commercial Bank (HCOB) released the preliminary estimates of the March Purchasing Managers’ Index (PMI). “German business activity rose at the quickest rate for ten months in March, amid a first increase in manufacturing production for almost two years,” according to the official report, with the manufacturing index printing at 48.3, up from the previous 46.5. The Services PMI, on the contrary, contracted to 50.2 from the 51.1 posted in February.
The EU Manufacturing PMI rose to 48.7 from the previous 47.6, while services output eased from 50.6 to 50.4. The EU Composite PMI posted 50.4, improving from the 50.2 achieved in February. On the price front, both input costs and output charges rose at slower rates.
As for the United States (US) the country published the February Chicago Fed National Activity Index, up to 0.18 in the month from -0.08 in January. Later in the day, S&P Global will release the preliminary estimates of the March US PMIs.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for the EUR/USD pair shows it trades with modest gains in the 1.0840, as the USD found near-term demand early in the American session. The same chart shows the pair keeps trading above all its moving averages, with a bullish 20 Simple Moving Average (SMA) crossing a flat 200 SMA, both around 1.0745, a strong support area. Technical indicators, in the meantime, retreated further from extreme levels, but hold within positive territory. The Relative Strength Index (RSI) indicator has stabilized around 60, indicating absent directional strength.
In the near term, and according to the 4-hour chart, the EUR/USD pair is finding near-term sellers around a bearish 20 SMA, while the 100 and 200 SMAs head firmly north far below the current level, THE 100 SMA offers dynamic support in the 1.0780 region. Finally, technical indicators remain within negative levels, with neutral-to-bearish slopes, suggesting lower lows are still likely in the day.
Support levels: 1.0830 1.0785 1.0745
Resistance levels: 1.0860 1.0905 1.0950
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
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.