Buckle Up for PMI Figures!
The EUR/USD pair was closed at 1.2226 after placing a high of 1.2230 and a low of 1.2169. EUR/USD edged higher on Thursday and posted gains for the day amid weakness in the U.S. dollar and improved risk sentiment of the market. The dollar edged lower in early European trade and lost its previous gains that were seen following the minutes from the U.S. Federal Reserve’s latest policy meeting revealed talks about bond tapering. The U.S. Dollar Index was down to 89.75, and the U.S. Treasury yields also went down to 1.625%. Market participants might rethink the perceived hawkishness coming from the minutes and pushed the U.S. dollar back down that boosted EUR/USD pair on Thursday.
On the data front, at 11:00 GMT, the German PPI remained flat with the expectations of 0.8%. At 13:00 GMT, the Current Account surplus dropped to 17.8B against the expected 24.3B and weighed on the single currency Euro that limited the rising prices of EUR/USD pair. From the U.S. side, at 17:30 GMT, the Philly Fed Manufacturing Index declined to 31.5 against the anticipated 40.8 and weighed on the U.S. dollar that helped EUR/USD to post gains. However, the Unemployment Claims from last week declined to 444K against the projected 453K and supported the U.S. dollar that capped further gains in EUR/USD. At 19:00 GMT, the CB Leading Index surged to 1.6% against the estimated 1.3% and supported the U.S. dollar, limiting the gains in EUR/USD prices.
He extended selling pressure surrounding the U.S. dollar lifted EUR/USD pair on Thursday despite better-than-expected data from the U.S. labor department about the unemployment claims made last week by Americans. The declined number of jobless claims showed that the economy was moving towards the goals set by Fed, and soon Fed will start thinking about tapering.
The European Central bank President Christine Lagarde said that the ECB remains committed to shielding the eurozone economy as the path of the coronavirus pandemic remains uncertain, and authorities should not withdraw support too soon. She repeated that it was essential that monetary and fiscal support were not withdrawn as ECB will stand by its commitment to protecting the EU’s economy. These comments from Lagarde added strength to the single currency Euro and supported rising prices of the EUR/USD pair.
EURUSD Intraday Technical Levels
Pivot Point: 1.2208
EUR/USD - Technical Outlook
The EUR/USD is trading at 1.2226 area, having tested the triple top resistance level of 1.2240 level. The pair has closed Doji candles below 1.2240 level, suggesting odds of bearish correction in the EUR/USD pair. On the lower side, the 20 and 50 periods EMA support the direct currency pair around 1.2225 and 1.2197 level. At the same time, breakout or a bearish crossover below these EMA can expose the EUR/USD towards 1.2197 and 1.2165. On the flip side, violation of 1.2240 resistance exposes the pair towards 1.2270 and 1.2309 resistacne. Traders will be focusing in the manufacturing and services PMI figures today. All the best!
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