- The EUR/USD loses impulse about 1,1295 in the early hours of the European session on Thursday, falling 0.35% in the day.
- The positive perspective of the tar prevails above the 100 -day key em.
- The immediate resistance level arises in 1,1425; The first level of support to monitor is 1,1270.
The EUR/USD torque weakens around 1,1295 during the first hours of Thursday’s European session, pressed by the renewed demand of the US dollar (USD). The optimism about the possible de -escalation of the commercial war between the US and China provides some support to the dollar and creates a wind against the main torque. The operators will be attentive to the data of the purchasing managers index (PMI) ISM manufacturing ISM, which will be published later on Thursday.
Technically, the constructive perspective of the EUR/USD is maintained, since the main torque is well backed above the exponential emma (EMA) of 100 days in the daily chart. The bullish impulse is reinforced by the Relative Force Index (RSI), which is located above the midline about 55.85, showing a short -term bullish impulse.
On the positive side, the first Alcisto barrier arises in 1,1425, the maximum of April 28. A decisive rupture above this level could collect more impulse and point to 1,1547, the maximum of April 22. Further north, the crucial resistance level is 1,1621, the upper limit of the Bollinger band.
In the bearish case, the minimum of April 29 in 1,1270 acts as an initial support level for the EUR/USD. A rupture of this level could drag the main torque towards the psychological level of 1.1000. The additional filter to the decline is 1,0917, the lower limit of the Bollinger band, followed by 1,0848, the 100 -day EMA.
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.
