The EUR/USD pair remains under bearish pressure and continues to trade below 1.0850 as disappointing PMI data from Germany and the Eurozone weigh on the Euro. The near-term technical outlook indicates oversold conditions for the pair, with investors eagerly awaiting PMI data from the US.
Euro PRICE This week
The table below displays the percentage change of the Euro (EUR) against major currencies this week, with the Euro being weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.49% | 0.27% | -1.67% | 0.55% | 1.37% | 1.51% | 0.18% | |
| EUR | -0.49% | -0.23% | -2.18% | 0.02% | 0.91% | 0.97% | -0.37% | |
| GBP | -0.27% | 0.23% | -2.05% | 0.24% | 1.14% | 1.19% | -0.15% | |
| JPY | 1.67% | 2.18% | 2.05% | 2.30% | 3.16% | 3.21% | 1.82% | |
| CAD | -0.55% | -0.02% | -0.24% | -2.30% | 0.90% | 0.97% | -0.38% | |
| AUD | -1.37% | -0.91% | -1.14% | -3.16% | -0.90% | 0.06% | -1.28% | |
| NZD | -1.51% | -0.97% | -1.19% | -3.21% | -0.97% | -0.06% | -1.30% | |
| CHF | -0.18% | 0.37% | 0.15% | -1.82% | 0.38% | 1.28% | 1.30% |
The souring market sentiment boosted the US Dollar on Tuesday, putting pressure on EUR/USD to move lower. Data from Germany revealed a contraction in business activity in July, with Composite PMI dropping to 48.7 from 50.4 in June. In the Eurozone, the Composite PMI also declined to 50.1 from 50.9 in the same period.
Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the PMI surveys, noting the deterioration in the manufacturing sector offsetting growth in services. Despite this, growth in the third quarter is still expected according to their GDP Nowcast.
Later in the day, S&P Global will release Manufacturing and Services PMI data for the US, with forecasts suggesting readings above 50. Any readings below 50 could impact the USD and potentially aid EUR/USD in staging a rebound.
US stock index futures are trading in the red following mixed earnings results from Tesla and Alphabet, indicating potential safe-haven flows that could hinder EUR/USD’s upward momentum.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) on the 4-hour chart indicates oversold conditions, with immediate resistance levels at 1.0840-1.0850, 1.0880, and 1.0900. On the downside, support levels are at 1.0810, 1.0790-1.0780, and 1.0740.
Economic Indicator – S&P Global Composite PMI
The S&P Global Composite Purchasing Managers Index (PMI) is a key indicator of US private-business activity in the manufacturing and services sector. A reading above 50 indicates expansion, while below 50 signals a decline, impacting the strength of the USD.
Next release: Wed Jul 24, 2024 13:45 (Prel)
Analysis: The EUR/USD pair is facing bearish pressure due to disappointing PMI data from Germany and the Eurozone. The upcoming US PMI data could provide some relief if readings remain above 50. Investors should monitor these indicators to gauge potential market movements and plan their investment strategies accordingly.