EUR/USD Price Update: Is It Time to Buy or Sell?

  • German ZEW Survey on Economic Sentiment Reports Disappointing Figures
  • US Producer Price Index Rises Less Than Expected in July
  • EUR/USD Trading with a Modest Bullish Bias, Breaking Through Resistance Key

Today, the EUR/USD pair remains stagnant, hovering around the 1.0920 mark as investors tread lightly amidst a lack of significant data releases. Meanwhile, stock markets are painting a gloomy picture, with European indexes in the red and US futures feeling the pressure. Despite this, weaker government bond yields are capping the demand for the US Dollar, with the 10-year Treasury note yield resting at 3.89%.

In terms of data, the German ZEW Survey on Economic Sentiment for August came in lower than expected, with a significant drop from the previous month. Conversely, the US saw an uptick in the NFIB Business Optimism Index for July, surpassing forecasts. Additionally, the US Producer Price Index (PPI) rose slightly below expectations, putting some downward pressure on the USD.

EUR/USD Technical Analysis: What Do the Charts Say?

Looking at the daily chart, the EUR/USD pair is showing signs of upside potential, despite a lack of momentum. The pair is trading above all key moving averages, with the 20 SMA leading the way. On the 4-hour chart, there is room for further gains as buyers defend key support levels and technical indicators point to a positive bias.

Key Levels to Watch:

Support: 1.0890, 1.0845, 1.0800

Resistance: 1.0950, 1.1005, 1.1045

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