German Ifo Business Climate Eyed!
The EUR/USD closed at $1.1925 after placing a high of$1.1970 and a low of $1.1911. After soaring for two consecutive sessions, the EUR/USD pair dropped on Wednesday amid the rising greenback despite a better than expected economic data release from Europe. The U.S. Dollar Index that measures the greenback value against its rival currencies placed minor gains for the day amid recent positive developments surrounding the Fed's decision to hike interest rate and taper monetary measures. However, on Wednesday, the DXY remained a little stressed due to the latest comments from Fed Chair Jerome Powell, who said that the decision to raise interest rates could not be determined only on inflation fears as other factors also contribute to it. Moreover, the DXY remained close to the 91.80 level and kept on pressuring EUR/USD currency pair on the day.
Furthermore, the U.S. Treasury yield on a 10-year note remained steady throughout the day between 1.46% and 1.48% that kept indexes at Wall Street under pressure. Nasdaq hit a new record high before trimming gains, whereas Dow Jones dropped by 0.05%. The recent correction in the equity market limited the decline in the U.S. dollar that kept EUR/USD pair under pressure throughout Wednesday's trading session.
On the data front, at 12:15 GMT, the French Flash Manufacturing PMI for June dropped to 58.6 against the projected 59.0 and weighed on Euro that added further losses in EUR/USD pair. The French Flash Services PMI also fell to 57.4 against the forecasted 59.6 and weighed the single currency Euro that dragged EUR/USD lower. At 12:30 GMT, the German Flash Manufacturing PMI raised to 64.9 against the projected 63.0 and supported Euro that capped further losses in EUR/USD. The German Flash Services PMI rose to 58.1 against the predicted 55.8 and supported Euro, limiting the loss in EUR/USD. The Flash Manufacturing PMI from the whole bloc also surged to 63.1 against the expected 62.4 and supported Euro that kept EUR/USD from falling further. At 13:00 GMT, the Flash Services PMI remained flat with the expectations of 58.0.
From the U.S. side, at 17:30 GMT, the Current Account from the U.S. showed a deficit of -196B against the expected -250B and supported the U.S. dollar that added pressure on EUR/USD. At 18:45 GMT, the Flash Manufacturing PMI rose to 62.6 against the anticipated 61.5 and helped the U.S. dollar, which also weighed EUR/USD. The Flash Services PMI dropped to 64.8 against the predicted 70.0 and weighed on the U.S. dollar that further caped loss in the EUR/USD. At 19:00 GMT, the New Home Sales fell to 769K against the predicted 864K and weighed on the U.S. dollar that limited downward pressure on EUR/USD.
EURUSD Intraday Technical Levels
Support Resistance
1.1900 1.1959
1.1876 1.1994
1.1840 1.2018
Pivot Point: 1.1935
**
EUR/USD - Technical Outlook**
The EUR/USD is trading choppy at the 1.1933 level, facing immediate resistance at the 1.1960 level that's extended by 38.2% Fibonacci retracement level. The direct currency pair is gaining support at the previously placed low level of 1.1916 level, and the same level is also marked as a double bottom. On the 4-hour timeframe, the EUR/USD pair has formed neutral candles, suggesting indecision among investors. However, the series of events coming out from the U.S economy is likely to support the EUR/USD pair. Especially focus will remain on the Final GDP figures as this can drive sharp price action on its release. The MACD indicator is still holding below 0, suggesting a bearish bias. A bullish breakout of 1.1958 level can expose the pair towards 1.1990 and 1.2030 levels. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.