EUR/USD Analysis: Eurozone Manufacturing Weak, US Dollar Strengthens
- Eurozone manufacturing sector faces challenges, US Dollar gains support.
- US employment data disappoints, impacting EUR/USD pair.
- Technical outlook shows EUR/USD under pressure, near multi-week lows.
On Thursday, the US Dollar strengthened, leading to the EUR/USD pair dropping to 1.0776, its lowest in three weeks. Factors contributing to this included falling Asian equities and poor Eurozone economic data. The Hamburg Commercial Bank reported that the Eurozone’s manufacturing sector faced setbacks at the start of the third quarter, with a decline in new orders impacting output and employment. Additionally, US jobless claims rose unexpectedly, and job cuts increased, causing the US Dollar to gain support.
Looking ahead, focus will be on the July ISM Manufacturing PMI data, expected to be released later in the day.
EUR/USD Technical Analysis
The EUR/USD pair is struggling to maintain the 1.0800 level, with technical indicators showing a downside risk. The pair has fallen below key moving averages on the daily chart, indicating strong selling pressure. In the short term, the pair remains below all its moving averages on the 4-hour chart, with resistance at 1.0810.
Support levels: 1.0760, 1.0720, 1.0685
Resistance levels: 1.0810, 1.0860, 1.0910
Overall, the EUR/USD pair is under pressure due to weak Eurozone data and disappointing US employment figures. Traders should monitor key support and resistance levels to make informed decisions on their investments.