- EUR/USD extends Thursday’s losses below the 1.0750 level.
- Preliminary manufacturing PMIs in Germany and the Eurozone disappoint in March.
- US Durable Goods Orders and Flash PMIs will be released during the American session.
Greater selling pressure is now dragging the EUR/USD to fall below the 1.0750 level, at two-day lows, during the European session on Friday. At time of writing, the pair is under pressure in the area of daily lows, near 1.0730 and losing close to 0.90% on the day.
EUR/USD weakens after PMI data
EUR/USD extends bearishness into the second half of the week and pull back from recent monthly highs, above the 1.0900 levelamid a subdued rebound in demand for the US dollar, while mixed Eurozone flash PMI data also helps corrective daily decline.
As for the latter, while the eurozone service sector remains healthy, the manufacturing sector continues to struggle to find a stronger footing after preliminary readings showed that the Manufacturing PMI for Germany and the Eurozone in general fell to 44.4 (from 46.3) and 47.1 (from 48.5).respectively, during March.
On the other side of the Atlantic, February durable goods orders, preliminary PMIs and the speech by J. Bullard, Governor of the St. Louis Fed, will be released.
What can we expect around the EUR?
The EUR/USD pair continues to fall and breaks below 1.0750 level due to profit taking, dollar recovery and disappointing results in the eurozone data.
Meanwhile, the price action of the pair should closely follow the dynamics of the dollar, as well as the possible next movements of the ECB in a context still dominated by high inflation, although in the midst of diminishing recession risks.
EUR/USD levels
At time of writing, EUR/USD is down 0.89% on the day, trading at 1.0733. Immediate support is found at 1.0732 (55-day SMA), followed by 1.0614 (100-day SMA) and 1.0516 (March 15 low). To the upside, a break above 1.0929 (March 23 high) would target 1.1032 (Feb 2 high) en route to 1.1100 (round level).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
