There have been no big comments from policymakers, but macroeconomic data has triggered some alarms as the economic setback continues among major economies.

European figures were upwardly revised, with the German index confirmed at 44.7 and the Eurozone one at 47.3. The United States one, on the other hand, was downwardly revised to 49.2. At the same time, the Services PMIs remained within expansion territory in the EU and the US but were downwardly revised.

Investors were quite disappointed with United States macroeconomic figures, which suggested the economy is heading into a recession. The official ISM PMIs declined in March when compared to February, and as a result were worse than anticipated.

The weekly chart for the EUR/USD pair shows it remains on the bullish side, although the bullish potential has receded. The Momentum indicator is flat, just above its 100 level, although the Relative Strength Index (RSI) indicator maintains its upward slope near overbought readings. At the same time, a bearish 100 Simple Moving Average (SMA) caps the upside at around the mentioned weekly high, while a firmly bullish 20 SMA leads the way higher by heading firmly up far below the current level.

The technical picture is similar on the daily chart. EUR/USD holds well above bullish moving averages, with the 20 SMA providing dynamic support at around 1.0800. Technical indicators, however, ease from fresh multi-week tops achieved mid-week, but with limited downward strength and well above their midlines.

The EUR/USD pair now faces resistance at around the 1.1000 mark, with gains beyond it exposing the 1.1060 area initially en route to the 1.1120/40 price zone. Below the 1.0800 threshold, the pair could extend its slide towards 1.0745, the 61.8% retracement of the 2022 yearly decline.

EURUSD can push higher if stays above the TL

Apr 09 2023