- EUR/USD falls back to 1.0970 before attempting a smooth rebound.
- German 10-year Bund yields move higher, retracing 0.50%.
- Preliminary PMIs for Germany and the eurozone surprised to the upside in March.
Sellers remain in control of sentiment around the common currency, leading the pair EUR/USD to keep the bearish bias unchanged during the European session on Thursday.
EUR/USD finds daily support near 1.0970
The EUR/USD loses ground for the third day in a row Thursday though has managed to recover from previous lows following better-than-expected preliminary PMI data both in Germany and in the euro zone.
Meanwhile, no positive news on the talks on the geopolitical front seems to continue to support the US dollar in the very short term, which also continues to be supported by the divergence in monetary policy between the Fed and the ECB and the differences in outlook. of economic growth between the United States and the EU.
The daily retracement in the pair contrasts with resumption of uptrend in German 10-year benchmark yieldswhich have retested the 0.50% zone so far on Thursday.
Turning to the US data, Markit will release preliminary PMIs for the manufacturing and services sector for the current month. In addition, initial jobless claims, durable goods orders, and speeches by R. Waller of the FOMC, C. Evans of the Chicago Fed, and R. Bostic of the Atlanta Fed will also be released.
EUR/USD levels
At time of writing, the EUR/USD is down 0.12% on the day, quoting at 1.0989. The next resistance is at 1.1137 (17 Mar high), followed by 1.1224 (55-day SMA) and 1.1271 (100-day SMA). On the other hand, a drop below 1.0960 (22 Mar low), would target 1.0900 (14 Mar low) on the way to 1.0805 (7 Mar low).
Source: Fx Street
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