Eurusd drops 0.31% amid mixed economic indicators from the us and eurozone

EURUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.31%	-35.2 Pips
Week to-date	0.22%	25 Pips
April	5.27%	570.6 Pips

Upcoming key events (London Time)

Wed 07:00 AM EUR GDP (3-mth)
Wed 10:00 AM EUR GDP (seasonally adjusted) (3-mth)
Wed 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
Wed 01:30 PM USD GDP annual rate

What happened lately

In the United States, the JOLTS report revealed a decline in job openings from 7.568 million in February to 7.192 million in March, indicating a cooling in the labor market. Additionally, the U.S. House Price Index showed modest growth of 0.1% in February, reflecting a decrease from 0.2% in January and 0.3% previously, according to the Federal Housing Finance Agency. These data points suggest a potential slowdown in economic momentum, which could impact consumer and business confidence, possibly leading to cautious spending and investment behaviors.

In the Euro Area, the Economic Sentiment Indicator fell to 93.6 points in April from 95 points in March, as reported by DG ECFIN. However, the Business Climate Indicator showed slight improvement, moving from -0.73 points in March to -0.67 points in April, according to the European Commission. Meanwhile, consumer confidence remained stable at -16.7 points in April. In Germany, consumer confidence improved significantly, with the GfK Survey reporting an increase to -20.6 points in May from -24.5 points in April. The improving business climate and consumer sentiment in key Eurozone economies suggest a mixed but tentatively positive outlook for the region.

The EURUSD pair experienced a 0.31% decline to 1.13846, entering a consolidation phase. The mixed economic indicators from both the U.S. and the Eurozone could create volatility in the pair’s movement due to the potential implications on monetary policy by the Federal Reserve and the European Central Bank. For the near term, the market’s focus would likely be on the upcoming high-impact reports, including the Eurozone’s GDP data and the U.S. GDP annual rate and PCE Price Index. Positive growth figures from the Eurozone could provide support for the euro, potentially influencing the EURUSD pair to move higher. Conversely, strong U.S. economic indicators could reinforce the dollar, countering any euro strength. Traders will be closely watching these developments, which will be pivotal for any immediate directional bias in the EURUSD currency pair.

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What can we expect from EURUSD today?

EURUSD on Tuesday dropped -0.31% to 1.13846. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for EURUSD looks mixed as the pair is likely to consolidate above 1.13623 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.14220 or trades above daily pivot 1.13921. Break above could target R1 at 1.14145. While to the downside, we are looking at 1.13623 (S1) and daily low of 1.13698 as support levels. EURUSD need to break on either side to indicate a short-term bias. A close below 1.13698 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:

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