Bullish Bias Dominates, Downward Channel Breakout!
The EUR/USD closed at 1.2007 after placing a high of 1.2025 and a low of 1.1986. EUR/USD extended its losses and reached its lowest since April 19 on the back of poor-than-expected data from Europe. The currency pair EUR/USD fell by 0.1% on Wednesday as the demand for the safe haven continued rising due to fluctuating risk-sentiment in the market. The U.S. dollar also benefited from an improving outlook for the U.S. economy, which is the largest economy in the world. The rising risk-off market sentiment in the market also weighed on the currency pair EUR/USD on Wednesday. The World Health Organization (WHO) stated that India accounted for about half of the coronavirus cases reported worldwide last week. WHO said that India accounted for about 46% of global cases and 25% of global deaths.
On the data front, at 12:00 GMT, the Spanish Unemployment Change dropped to -39.0K against the forecasted -70.0K and weighed on Euro and added further losses in EUR/USD pair. At 12:15 GMT, the Spanish Services PMI surged to 54.6 against the projected 50.0 and supported Euro and capped downside in EUR/USD. At 12:45 GMT, the Italian Services PMI dropped to 47.3 against the forecasted 50.0 and weighed on Euro and added losses in EUR/USD pair. At 12:50 GMT. The French Final Services PMI remained flat with the expectations of 50.4. At 12:55 GMT, the German Final Services PMI also came in line with the expectations of 50.1. At 13:00 GMT, the Final Services PMI from the whole bloc also remained flat at 50.5. At 14:00 GMT, the Purchasing Price Index came in line with the forecasts to 1.1%.
From the U.S. side, at 17:15 GMT, the ADP Non-Farm Employment Change in April fell to 742K against the predicted 872K and weighed on the U.S dollar that capped further losses in EUR/USD. At 18:45 GMT, the Final Services PMI in April rose to 64.7 against the estimated 63.1 and showed an expansion in the service industry that pushed the dollar higher and added losses in EUR/USD pair. At 19:00 GMT, the ISM Services PMI dropped to 62.7 against the projected 64.2 and weighed on the U.S. dollar that limited the losses in EUR/USD pair.
The British Prime Minister Boris Johnson and the U.S. Secretary of State Antony Blinken agreed on the need for a global rollout of coronavirus vaccines to end the pandemic. They both agreed that the global rollout of vaccines will be a key to defeating the coronavirus pandemic.
EURUSD Intraday Technical Levels
Pivot Point: 1.2006
EUR/USD - Technical Outlook
The EUR/USD’s bearish bias seems to get weaker as the pair has bounced off over the double bottom support area of 1.2005 level. On the 4 hour timeframe, the EUR/USD pair has violated the downward channel that was extending resistance at the 1.2020 level. On the higher side, the pair faces immediate resistance at 1.2025 level and breaks out of this level exposes the pair until 1.2067 resistance level. The 50 periods EMA is staying at 1.2065 area, and typically it works as a significant hurdle for bulls. Traders will be keeping an eye on the 1.2005 level today as it’s extending solid support to the EUR/USD currency pair, especially ahead of NFP data on Friday. All the best!
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