- EUR/USD loses momentum to approximately 1.1295 in the early European session on Thursday, losing 0.35 % a day.
- The positive offer of the pair over the EMA key prevails for 100 days with the bullish RSI index.
- The instant resistance level appears at 1.1425; The first support level to watch is 1.1270.
The EUR/USD pair weakens about 1,1295 during the early European session on Thursday, as it was pressed through renewed request in US dollars (USD). Optimism about the possible removal of the US -Chinese trade war provides some support for Greenback and creates the opposite winds of the main husband. Merchants will monitor the data of the American ISM manufacturing manufacturers (PMI), which is scheduled later on Thursday.
Technically, the constructive expectations of EUR/USD remain in place as the main pair is well -backed higher than the 100 -day SIA moving average (EMA) on the daily chart. The bullish momentum is strengthened by the RSI index, which stands over the midfield near 55.85, and displays the bullish momentum in the near term.
On the bright side, the first bullish barrier appears at 1.1425, the highest level on April 28. A decisive break above this level can capture more momentum and aim to 1.1547, the highest level on April 22. To the north, the decisive resistance level is seen at 1.1621, the upper limits of the Bolinger range.
In the Habbiya case, the lowest level on April 29th works at 1.1270 as an initial support level for EUR/USD. The violation of this level can lead to the main pair with a psychological level 1.1000. Additional negative candidate for watching is 1.0917, the minimum Bollinger, followed by 1.0848, EMA for 100 days.
The euro graph/daily dollar
Common questions euro
The euro is the currency of the 19 European Union countries belonging to the eurozone. It is the second most traded currency in the world behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily rotation of more than $ 2.2 trillion per day. EUR/USD is the most trading currency pair in the world, which represents an estimated 30 % of all transactions, followed by EUR/JPY (4 %), EUR/GBP (3 %) and EUR/AUD (2 %).
The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank sets interest rates and runs monetary policy. The primary mandate in the European Central Bank is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary performance is to raise or reduce interest rates. Relatively high interest rates – or expect higher rates – usually benefit from the euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.
The inflation data in the euro area, measured by a coordinated index of consumer prices (HICP), is an important economist for the euro. If inflation increases more than expected, especially if it is 2 % higher than the European Central Bank’s goal, then the European Central Bank is obliged to raise interest rates to return it in control. Relatively high interest rates usually benefit compared to its euro counterparts, as it makes the region more attractive as a place for global investors to stop their money.
Data ejaculates a measurement of economics health and can affect the euro. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect the trend of uniform currency. The strong economy is useful for the euro. Not only is to attract more foreign investment, but the European Central Bank may encourage interest rates, which will enhance the euro directly. Otherwise, if economic data is weak, the euro is likely to decrease. Economic data of the four economies in the eurozone (Germany, France, Italy and Spain) are of particular importance, because it represents 75 % of the eurozone economy.
Other important version of the euro is the commercial balance. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very absolute after exports, its currency will obtain a purely value of the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
