EUR/USD is hovering around 1.1050 in the European session on Tuesday, showing minimal daily gains without a significant recovery momentum. The technical outlook remains uncertain as the pair struggles to make a decisive move.
Thin trading conditions due to the Labor Day holiday in the US are keeping the market cautious, providing support for the US Dollar (USD) and limiting EUR/USD’s upward potential.
ISM Manufacturing PMI Data in Focus
The highlight of the day will be the release of August ISM Manufacturing PMI data. Forecasts suggest an increase to 47.5 from 46.8 in July. If the data surpasses expectations and shows expansion in the manufacturing sector, the USD could strengthen further.
Investors will also pay attention to the Employment Index within the survey. A significant recovery in this data could alleviate concerns about the labor market, boosting the USD. Conversely, a decline in the number of employed in the manufacturing sector could weigh on the currency, leading to a potential rebound in EUR/USD.
EUR/USD Technical Analysis
On the technical front, EUR/USD has dipped below the 100-period Simple Moving Average at 1.1070 on the 4-hour chart, with the Relative Strength Index (RSI) below 40, indicating weak buyer interest.
Key support levels for EUR/USD include 1.1040, 1.1000, and 1.0970, while resistance levels are at 1.1070, 1.1100, and 1.1160.
Euro FAQs
The Euro is the currency for 20 European Union countries in the Eurozone, with EUR/USD being the most traded currency pair globally. The European Central Bank (ECB) plays a crucial role in maintaining the Euro’s stability through monetary policy decisions.
Economic data releases, inflation rates, and trade balance figures are essential factors influencing the Euro’s value against other currencies.