EUR/USD revisits the 1.0970 before attempting a mild bounce
Sellers remain well in control of the sentiment surrounding the single currency, motivating EUR/USD to keep the selling bias unchanged on Thursday. EUR/USD loses ground for the third session in a row on Thursday, although it manages to rebound from earlier lows in the wake of better-than-forecast preliminary results from PMIs in both Germany and the broader Euroland. In the meantime, no news in the geopolitical scenario appears to keep lending support to the dollar in the very near term, which remains already underpinned by the Fed-ECB divergence in monetary policy and the US-EU economic growth prospects.
The daily pullback in spot came in contrast with the resumption of the uptrend in the German 10y benchmark yields, which retest the 0.50% zone so far on Thursday. Data wise in the US docket, flash Manufacturing, and Services PMIs are due seconded by Initial Claims, Durable Goods Orders, and speeches by FOMC’s Waller, Evans, and Bostic.
EUR/USD stays under scrutiny and keeps the downside bias well and sound below the 1.1000 yardsticks. So far, pockets of strength in the single currency should appear reinforced by the speculation of the start of the hiking cycle by the ECB at some point by year-end, while higher German yields, elevated inflation, the decent pace of the economic recovery, and auspicious results from key fundamentals in the region are also supportive of a firmer euro for the time being. So far, the spot is retreating 0.12% at 1.0989 and faces the next up barrier at 1.1137 (weekly high March 17) followed by 1.1224 (55-day SMA) and finally 1.1271 (100-day SMA). On the other hand, a drop below 1.0960 (low March 22) would target 1.0900 (weekly low March 14) en route to 1.0805 (2022 low March 7).
EUR/USD stays under scrutiny and keeps the downside bias well and sound below the 1.1000 yardsticks. So far, pockets of strength in the single currency should appear reinforced by the speculation of the start of the hiking cycle by the ECB at some point by year-end, while higher German yields, elevated inflation, the decent pace of the economic recovery, and auspicious results from key fundamentals in the region are also supportive of a firmer euro for the time being. So far, the spot is retreating 0.12% at 1.0989 and faces the next up barrier at 1.1137 (weekly high March 17) followed by 1.1224 (55-day SMA) and finally 1.1271 (100-day SMA). On the other hand, a drop below 1.0960 (low March 22) would target 1.0900 (weekly low March 14) en route to 1.0805 (2022 low March 7).