The EUR/USD currency pair remains stuck in consolidation mode around the psychological 1.1400 level, a testimony of investors’ mixed sentiments. Following an earlier high of 1.1425 late Tuesday, the pair has retreated. Today it is trading in the price region of 1.1380. This movement is a sign that the tide is turning, and further gains are still within reach.
The EUR/USD has pulled back lately, but remains well above parity. The mildly bullish 20 Simple Moving Average (SMA) further supports this position. Longer moving averages curl down underneath this threshold, indicating a bullish-bearish divergence in market sentiment. The consolidation pattern we’re seeing in the pair suggests a wait-and-see approach from traders as they wait for more clarity to emerge.
Recent news of progress in negotiations between the United States and its trading partners has provided some relief to financial markets. This unexpected news has certainly strengthened the US Dollar, helping it reclaim much of its recent losses. Consequently, investors are reconsidering their outlooks on the EUR/USD pair. Across the Atlantic, the daily chart for EUR/USD is starting to show signs of higher momentum weakening. Analysts are eagerly watching its next steps.
The next support levels for the currency pair are seen at 1.1330, 1.1285 and 1.1240. Conversely, resistance extends to 1.1425, 1.1470, and 1.1510. These levels will be key moving forward for traders who want to take advantage of these new market dynamics.
As the new American trading session develops, key market players will be eyeing some important economic indicators. Particularly important to them will be the JOLTS Job Openings report and the CB Consumer Confidence index. These reports are likely to have a big impact on the EUR/USD currency pair. Plenty more see US Consumer Confidence falling again in April.
In recent weeks, sentiment against US tariffs has been dominating financial boards. Traders are keenly attuned to any developments that could affect future trade relations, especially in the context of first-tier data releases that may impact EUR/USD movements. Without meaningful data to guide them, financial markets today are left swinging to whatever the prevailing mood happens to be on any given day toward the currency cross.