Daily Price Outlook
EUR/USD is trading at 1.1062 up by +0.03% on Thursday. During initial trading hours the currency pair followed its previous gains and reached its previous day highest level at 1.1092. However, after facing resistance, it has started to give up gains. The rising prices of major currency pair was due to the weak US dollar.
The greenback was under pressure on Thursday after US Central Bank shifted its policy stance by saying that it will take decision on future rate hikes based on data driven approach. This was due to the deteriorating banking sector and increased fears of a US recession. As a result the US Dollar Index (DXY) dropped by -0.72% in a single day on March 3.
Meanwhile, the market participants are waiting for the announcement of interest rate decision from the European Central Bank on Thursday. The growth rate of Eurozone Economy has squeezed sharply with high inflation rate and investors have mixed views on the upcoming interest rate decision by ECB.
The President of ECB, Christine Lagarde is expected to announce the 7th consecutive interest rate hike today. However, the pace of rate hike is expected to remain low with 25 basis points, which is keeping the Eurozone currency under pressure and weighing on EUR/USD prices.
On US economic front, the Unemployment Claims from the United States for the past week will play some role in market volatility in American trading hours. Furthermore, the upcoming NFP data and unemployment rate release on Friday is also keeping the USD traders out of the market today.
Daily Technical Levels
Pivot Point: 1.1050
EUR/USD – Technical Outlook
The EURUSD pair opens today's trading with a notable loss, breaching the intraday positive trend line and going for the anticipated intraday drop, with the 1.0745 level as the primary objective.
It's critical to keep an eye on the price once it reaches this level, because breaching it will prolong the bearish wave to the 1.0630 area as the next key objective.
As a result, a bearish bias is recommended for today, which is supported by trading below the EMA50. However, remember that a break of the 1.0870 level will end the negative scenario and allow the price to resume its primary bullish wave.
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