- The EUR/USD gains strength about 1,1370 in the early hours of the European session on Friday.
- The constructive perspective of the tor prevails above the 100 -day key em.
- The immediate resistance level arises in the region of 1,1400-1.1415; The downward goal to be monitored is 1,1280.
The EUR/USD pair is strengthened around 1,1370 during the first hours of European negotiation on Friday. The hopes of a commercial agreement between the United States (USA) and the European Union (EU) provide some support to the euro (EUR). The negotiation volume is likely to be light on Good Friday.
Technically, the positive perspective of the EUR/USD is still at stake since the price is well supported above the exponential number of 100 days in the daily chart. The bullish impulse is reinforced by the 14 -day relative force (RSI) index, which is located above the midline, showing a short -term bullish impulse.
The first upward objective for the main torque arises in the area of ​​1,1400-1.1415, representing the psychological and maximum level of April 16. Extended profits could see a rally around 1,1495, the upper limit of the Bollinger band. The additional filter to monitor is 1,1546, the minimum of November 1, 2021.
On the negative side, the initial support level for the EUR/USD is at 1,1280, the minimum of April 16. The key containment level is observed in the round figure of 1,1100. A sustained trade below the aforementioned level could see a fall towards 1,0888, the minimum of April 8.
EUR/USD daily graphics
Euro Faqs
The euro is the currency of the 19 countries of the European Union that belong to the Eurozone. It is the second most negotiated currency in the world, behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily business volume of more than 2.2 billion dollars a day. The EUR/USD is the most negotiated currency pair in the world, with an estimate of 30 %of all transactions, followed by the EUR/JPY (4 %), the EUR/GBP (3 %) and the EUR/AU (2 %).
The European Central Bank (ECB), based in Frankfurt (Germany), is the Eurozone reserve bank. The ECB establishes interest rates and manages monetary policy. The main mandate of the ECB is to maintain price stability, which means controlling inflation or stimulating growth. Its main tool is the rise or decrease in interest rates. Relatively high interest rates (or the expectation of higher types) usually benefit the euro and vice versa. The GOVERNMENT BOOK of the ECB makes decisions about monetary policy in meetings that are held eight times a year. The decisions are made by the directors of the National Banks of the Eurozone and six permanent members, including the president of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the harmonized consumer prices index (IPCA), are an important economic indicator for the euro. If inflation increases more than expected, especially if it exceeds 2% of the ECB, it forces the ECB to rise interest rates to control it again. Relatively high interest rates compared to their counterparts usually benefit the euro, since they make the region more attractive as a place for global investors to deposit their money.
Published data measure the health of the economy and can have an impact on the euro. Indicators such as GDP, manufacturing and services PMIs, employment and consumer trust surveys can influence the direction of the single currency. A strong economy is good for the euro. Not only attracts more foreign investment, but it can encourage the ECB to raise interest rates, which will directly strengthen the euro. Otherwise, if economic data is weak, the euro is likely to fall. The economic data of the four largest economies in the euro zone (Germany, France, Italy and Spain) are especially significant, since they represent 75% of the economy of the euro area.
Another important fact that is published on the euro is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will gain value simply by the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
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.
