EUR/USD Maintains Positive Bias But Struggles Around 1.0900
The EUR/USD pair continues to oscillate near the 1.0900 level on Monday, briefly rising above the psychological level to hit a high of 1.0916. Still, caution among investors and a challenging technical resistance level are preventing the euro from extending gains.
At the time of writing, the EUR/USD pair is trading above its opening price at 1.0885, up 0.38% on the day. At the same time, the DXY Index slipped to the 102.15 area, recording a 0.4% decline on Monday.
The U.S. dollar remains on the defensive across the board on the back of expectations that the Federal Reserve might be close to ending its tightening cycle. On Monday, data showing the U.S. manufacturing sector continued to contract in March fueled those prospects.
US S&P Global and ISM Manufacturing PMI came in weaker than expected in March. The S&P PMI came in at 49.2 versus the 49.3 expected, while the ISM gauge fell deeper into contraction territory to a two-year low of 46.3 against the 47.5 expected.
Meanwhile, the German and Eurozone S&P Global Manufacturing PMIs came in better than expected in March but remained in contraction territory, at 44.7 and 47.3, respectively.
In a surprise move on Sunday, the OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day.
Against this backdrop, U.S. bond yields retreated, with the 10-year yield at 3.42%, while Wall Street indexes traded mixed. The Dow Jones is up 0.7%, the S&P 500 is flat, and the Nasdaq Composite is down 0.9%.
From a technical perspective, the EUR/USD holds a positive short-term bias according to indicators on the daily chart, which are turning flat but in positive ground.
On the upside, the pair needs to regain the 1.0900 area – 50% retracement of the May 2021 – September 2022 downfall – to pave the way for a steeper climb, targeting February’s highs at 1.1030. On the other hand, the inability to reclaim 1.0900 might pose a threat to the medium-term outlook. The immediate support levels are seen at 1.0790, and then the 20-day SMA at 1.0735.
At the time of writing, the EUR/USD pair is trading above its opening price at 1.0885, up 0.38% on the day. At the same time, the DXY Index slipped to the 102.15 area, recording a 0.4% decline on Monday.
The U.S. dollar remains on the defensive across the board on the back of expectations that the Federal Reserve might be close to ending its tightening cycle. On Monday, data showing the U.S. manufacturing sector continued to contract in March fueled those prospects.
US S&P Global and ISM Manufacturing PMI came in weaker than expected in March. The S&P PMI came in at 49.2 versus the 49.3 expected, while the ISM gauge fell deeper into contraction territory to a two-year low of 46.3 against the 47.5 expected.
Meanwhile, the German and Eurozone S&P Global Manufacturing PMIs came in better than expected in March but remained in contraction territory, at 44.7 and 47.3, respectively.
In a surprise move on Sunday, the OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day.
Against this backdrop, U.S. bond yields retreated, with the 10-year yield at 3.42%, while Wall Street indexes traded mixed. The Dow Jones is up 0.7%, the S&P 500 is flat, and the Nasdaq Composite is down 0.9%.
From a technical perspective, the EUR/USD holds a positive short-term bias according to indicators on the daily chart, which are turning flat but in positive ground.
On the upside, the pair needs to regain the 1.0900 area – 50% retracement of the May 2021 – September 2022 downfall – to pave the way for a steeper climb, targeting February’s highs at 1.1030. On the other hand, the inability to reclaim 1.0900 might pose a threat to the medium-term outlook. The immediate support levels are seen at 1.0790, and then the 20-day SMA at 1.0735.
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