EUR/USD Analysis: Labor Day Celebrations Keep Markets Closed, Eurozone Manufacturing PMIs Revised Upward
As the United States and Canada celebrate Labor Day, financial markets remain closed, leading to limited activity in the trading world. The EUR/USD pair has seen a slight recovery, currently hovering around 1.1067, with the American session expected to remain quiet due to the holiday.
The Eurozone Manufacturing Purchasing Managers’ Index (PMIs) for August were revised upward, providing some support for the Euro. The final report showed an improvement in manufacturing output, with Germany also showing positive signs compared to initial estimates.
Looking at the technical outlook, the EUR/USD pair seems to be in a corrective phase, with limited upside potential in the near term. While the daily chart shows some support around the 20 Simple Moving Average (SMA), the Momentum indicator is pointing south, indicating a bearish sentiment. On the 4-hour chart, the 100 SMA is acting as a support level, but the 20 SMA is providing resistance around 1.1090.
Overall, the risk of a bearish extension in the EUR/USD pair seems limited for now. Support levels to watch are at 1.1020, 1.0985, and 1.0940, while resistance levels are at 1.1090, 1.1145, and 1.1190.