EURUSD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.66% | 68.4 Pips |  |
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| Week to-date | 0.07% | 7.8 Pips |  |
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| February | 0.96% | 99.7 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the Euro Area, the Consumer Confidence Indicator showed improvement in the February flash estimate, rising to -13.6 points from -14.2 points in January. This positive change suggests that consumers in the Eurozone are slightly more optimistic about the current economic situation. The improvement in consumer confidence is a positive signal for the Eurozone economy, as it may lead to increased consumer spending, which is vital for economic growth.
In the United States, the Initial Unemployment Insurance Claims for the week ending 15 February rose to 219,000, up from the previous figure of 213,000. This increase indicates a slight deterioration in the labor market. Additionally, the U.S. Manufacturing Business Outlook Survey saw a significant decrease to 18.1 points in February, down from 44.3 points in January, reflecting a slowdown in manufacturing sector optimism.
Germany’s Producer Price Index (PPI) remained unchanged at -0.1% in January compared to December, while on an annual basis, the PPI decreased to 0.5% from 0.8% in December. The flat monthly PPI suggests that price pressures in the production sector remain stable, but the annual decline signals a reduction in inflationary pressures which might ease cost burdens for businesses.
In the U.S. housing sector, January saw a slight increase in Building Permits to 1.483 million, up from a revised 1.482 million in December. However, Housing Starts decreased to 1.366 million from the revised December figure of 1.515 million. The decline in housing starts could indicate potential challenges in the construction sector, reflecting possible economic headwinds or changes in housing demand.
With the release of these economic indicators, there is mixed sentiment affecting the EURUSD currency pair. The improvement in Eurozone Consumer Confidence provides support for the euro, while the decrease in U.S. manufacturing optimism and rise in unemployment claims weigh on the dollar. These factors combined to boost the EURUSD on Thursday by 0.66% to 1.04970. As there are no major economic events scheduled for the day, the market might remain influenced by these recent data releases and general market sentiment.
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What can we expect from EURUSD today?
EURUSD on Thursday rose 0.66% to 1.04970. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.05275 with break above could target R2 at 1.0558 or figure level area. While towards the downside, we are looking at daily low of 1.04183 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.05034 may suggest continuation after recent positive movement.
For the week to-date, take note that EURUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.06126 |
| R2 | 1.0558 |
| R1 | 1.05275 |
| Daily Pivot | 1.04729 |
| S1 | 1.04424 |
| S2 | 1.03878 |
| S3 | 1.03573 |
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