The main EUR/USD currency pair finds it difficult to build on daily gains, hovering in the 1.1320s after retreating overnight. Having reached a low of 1.1285 during early Asian trading on Thursday, the pair now seems intent on bouncing back. Currently, it is fighting hard to climb back above the essential 1.1300 mark. At the moment, EUR/USD could be soon testing the 1.1200 if the current trend continues. This confluence presents a favorable selling opportunity for traders.
Throughout the course of the day, the EUR/USD currency pair recovered modestly. Right before the American market opened, it reached an intraday high of roughly 1.1338. However, it’s still stuck underneath its 20 and 100 simple moving averages (SMAs), showing the signs of a bearish trend. That has caused a risk skew – at least for now – to the pair’s continuation lower.
EUR/USD support is found at 1.1275, 1.1230 and 1.1190, with these forming key lines in the sand where stabilization could begin eastern. On the upside though, resistance levels at 1.1340, 1.1385, and 1.1425 are where bulls might have to go through challenging waters.
The ongoing situation for the Euro against the Dollar is compounded by economic factors, particularly the anticipated US ISM Manufacturing PMI report for April. The consensus analysts estimate is for this report to show a slightly greater fall-off of manufacturing activity. This change swing might subject much greater strain on the EUR/USD trendy pattern.
Even in a strong economic environment, sellers are hitting the pause button. They’re anxious to get their hands on fresh information that might just swing their trading plans. Technical indicators reflect a recent trend of small upward gains despite still hovering in the red. To us, that indicates fear that market participants do not know which way EUR/USD goes next.