EUR/USD: A Comprehensive Analysis of the Currency Pair’s Performance
Tepid European Data and US Services Output Impact EUR/USD
- European Economic Data: The Eurozone Producer Price Index (PPI) saw a 0.6% increase in August, surpassing expectations. However, the annual PPI printed -2.3%, indicating a slight decline. The Hamburg Commercial Bank’s final estimates for September PMIs showed modest improvements in services output but a decrease in total business activity.
- US Economic Data: The Challenger Job Cuts report revealed a 4% decrease in job cuts in September. Initial Jobless Claims for the week ended September 27 were worse than anticipated, rising by 225K.
EUR/USD Short-Term Technical Outlook
On the daily chart, EUR/USD is neutral to bearish. The Momentum indicator lacks clear direction, while the 20-day Simple Moving Average (SMA) is above the 100-day and 200-day SMAs. Immediate resistance is at 1.1101, with a key support level at 1.0970. In the 4-hour chart, the Momentum indicator signals a bearish potential, with the 20-period SMA at 1.1078 below the 100-period SMAs.
- Support Levels: 1.1020, 1.0980, 1.0935
- Resistance Levels: 1.1050, 1.1100, 1.1140
(The technical analysis section was partially created using an Artificial Intelligence tool and reviewed by an editor.)
Analysis of EUR/USD Performance
The EUR/USD pair’s recent movements reflect the impact of economic data from both Europe and the US. The European data, including the PPI and PMIs, influenced demand for the Euro during London trading hours. On the other hand, US economic reports, such as the Challenger Job Cuts and Initial Jobless Claims, highlighted the state of the American economy.
From a technical standpoint, the daily and 4-hour charts indicate a neutral to bearish outlook for EUR/USD. The lack of clear direction in the Momentum indicator and the positioning of SMAs suggest a potential shift in market sentiment. Traders should watch for key support and resistance levels to gauge the currency pair’s future movements.
Overall, the performance of EUR/USD is a reflection of the broader economic landscape, with investors closely monitoring data releases and market indicators to make informed trading decisions.