EURUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -1.27% | -146.2 Pips |  |
||
| Week to-date | -0.34% | -38.3 Pips |  |
||
| April | 4.94% | 534.6 Pips |  |
||
Upcoming key events (London Time)
Wed 08:30 AM EUR HCOB Composite PMI Wed 08:30 AM EUR HCOB Manufacturing PMI Wed 08:30 AM EUR HCOB Services PMI
Wed 09:00 AM EUR HCOB Eurozone Composite PMI Wed 09:00 AM EUR HCOB Eurozone Manufacturing PMI Wed 09:00 AM EUR HCOB Eurozone Services PMI
What happened lately
In the Euro Area, the Consumer Confidence Indicator experienced a decline in April, dropping to -16.7 points from its previous level of -14.5 in March, as reported by DG ECFIN. This downturn suggests a decrease in consumer optimism regarding the economic outlook within the Eurozone. Such a fall in confidence may reflect concerns over economic stability and growth, potentially triggered by external economic pressures or internal fiscal challenges. This decline could lead to reduced consumer spending, further impacting the overall economic activity within the region.
The current downturn in the Euro Area Consumer Confidence Indicator has already influenced the foreign exchange market, leading to a decline in EURUSD. On Tuesday, the EURUSD dropped by 1.27% to 1.13623, indicating a weakened Euro compared to the US Dollar. This downturn in the Consumer Confidence Indicator might have contributed to the Euro’s devaluation, as investors often interpret such declines as a sign of economic vulnerability. The decrease in consumer confidence suggests potential challenges in domestic demand, which can adversely affect currency strength.
Looking forward, the release of the HCOB Composite PMI, Manufacturing PMI, and Services PMI for both Germany and the Eurozone could further impact EURUSD. If these indicators portray a more negative than expected economic scenario, we might see additional pressure on the Euro, potentially causing further declines against the US Dollar. Conversely, if these PMI figures show above-anticipated results, signaling resilience or growth in specific sectors, the Euro might regain some strength. However, given the current negative consumer confidence trend, traders and analysts will likely be cautious about any potential recovery in the Euro’s value. Overall, market participants will closely monitor upcoming data releases to assess the potential direction of the EURUSD pair.
Latest from X (Twitter)
What can we expect from EURUSD today?
EURUSD on Tuesday dropped -1.27% to 1.13623. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at S1 1.13 with break below could see further selling pressure towards S2 at 1.12376. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.15473 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.13613 would indicate selling pressure.
For the week to-date, take note that EURUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.1672 |
| R2 | 1.16096 |
| R1 | 1.1486 |
| Daily Pivot | 1.14236 |
| S1 | 1.13 |
| S2 | 1.12376 |
| S3 | 1.1114 |
#EURUSD Trending on Twitter
[custom-twitter-feeds hashtag=”#EURUSD” num=3 showheader=false]