EUR/USD remains strong above 1.1100 in the European session, showing resilience after PMI data release. Market participants closely monitor S&P Global PMI figures for further insights.

On Wednesday, EUR/USD maintained its bullish momentum, hitting its highest level since July 2023 above 1.1170. Despite a minor correction in the early European session, the pair stabilized around 1.1150.

EUR/USD Chart

Germany’s recent data revealed a contraction in the private sector’s economic activity in August, with the HCOB Composite PMI dropping to 48.5 from 49.1 in July. Chief Economist Dr. Cyrus de la Rubia noted a lack of expected recovery in the economy, hinting at potential interest rate cuts by the ECB to boost sentiment.

However, there was a positive development as the HCOB Composite PMI improved to 51.2 in August from 50.2 in July. Services PMI also saw a jump to 53.3, mainly driven by increased activity in France linked to the Olympic Games in Paris.

Later today, S&P Global will release preliminary Services and Manufacturing PMI data for August. Any unexpected drop in Services PMI could impact the USD’s demand, while a positive report may support the USD and limit EUR/USD’s upward movement.

EUR/USD Technical Analysis

EUR/USD is trading in the upper half of the ascending regression channel, with the RSI indicator suggesting a bullish bias. Key support levels include 1.1100, 1.1060, and 1.1030, while resistance levels are at 1.1150, 1.1170, and 1.1200.

For more information on Euro FAQs and how economic data affects the Euro currency, check out the FAQs section below.

Euro FAQs

Learn more about the Euro currency, European Central Bank, inflation data, economic indicators, and trade balance in the Eurozone.

Understanding these factors can help you make informed decisions in the financial market and manage your investments effectively.

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