EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■  EUR/USD drifted mostly sideways on sedate Wednesday, heads into quiet Thursday.

■  Fiber traders will be on the lookout for Thursday’s US unemployment applications.

■  Friday looms ahead with PMI activity figures on both sides of the Pacific.


EUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s Purchasing Managers Index (PMI) activity figures for meaningful data releases to drive sentiment in either direction.


American markets will be back in action on Thursday, just in time for the release of the latest US Initial Jobless Claims for the week ending June 14. The median market forecasts anticipate a modest drop in new US jobless benefit claims to 235K from the previous 242K, but they are still expected to surpass the four-week running average of 227K.


The European Central Bank’s (ECB) latest Economic Bulletin is also expected early in the Thursday market window, but little new information is expected as the ECB rehashes what has already been covered in previous public appearances from ECB policymakers following the latest rate call.


Friday will end the trading week with a hectic thump. Pan-European PMI survey figures will begin dropping on markets starting at 07:30 GMT, to be followed by US PMI figures at 13:45 GMT. The Pan-European HCOB Manufacturing Purchasing Managers' Index (PMI) is expected to increase to 47.9 month-over-month (MoM) from 47.3, with the Services component forecasted to rise to 53.5 from 53.2. On the US side, both the Manufacturing and Services components are anticipated to decrease. The Manufacturing component is expected to ease to 51.0 from 51.3, and the Services PMI is forecasted to drop to 53.3 from 54.8.


EUR/USD technical outlook


The EUR/USD is currently facing resistance from the 200-hour Exponential Moving Average (EMA) at 1.0767, making it challenging for the currency pair to surpass the 1.0750 mark. Although it has shown some recovery from recent lows near 1.0670, the upward momentum is hindered. The daily candlesticks indicate a potential bullish move towards the 200-day EMA around 1.0800. 


However, the presence of technical resistance near 1.1140 from late December’s peaks is limiting bullish momentum. If this trend continues, the EUR/USD could experience a downside reversal, potentially leading to new lows for 2024, possibly falling below 1.0600.


EUR/USD hourly chart



EUR/USD daily chart


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
EUR/USD remains below 1.1800 due to renewed trade concerns, Eurozone Retail sales eyedEUR/USD edges lower after registering gains in the previous session, trading around 1.1780 during the Asian hours on Monday.
Author  FXStreet
9 mins ago
EUR/USD edges lower after registering gains in the previous session, trading around 1.1780 during the Asian hours on Monday.
placeholder
GBP/USD lacks firm intraday direction, flat lines around mid-1.3600sThe GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band around mid-1.3600s during the Asian session amid mixed fundamental cues.
Author  FXStreet
14 mins ago
The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band around mid-1.3600s during the Asian session amid mixed fundamental cues.
placeholder
USD/JPY slumps to near 144.30 as Yen’s safe-haven demand increasesThe USD/JPY pair falls over 0.4% to near 144.30 during European trading hours on Friday.
Author  FXStreet
Jul 04, Fri
The USD/JPY pair falls over 0.4% to near 144.30 during European trading hours on Friday.
placeholder
AUD/USD drifts to 0.6550 as concerns about US tariffs resurfaceThe Australian Dollar is trading lower for the second day in a row, retreating from year-to-date highs, at 0.6590.
Author  FXStreet
Jul 04, Fri
The Australian Dollar is trading lower for the second day in a row, retreating from year-to-date highs, at 0.6590.
placeholder
Pound Sterling stabilizes as UK Chancellor Reeves confirms to remain in the role The Pound Sterling (GBP) trades broadly stable against its peers on Friday.
Author  FXStreet
Jul 04, Fri
The Pound Sterling (GBP) trades broadly stable against its peers on Friday.