EUR/USD Technical Analysis: Attempts to Bounce Face Obstacles

The price of the currency pair EUR/USD is trying to rise for two days in a row. EUR/USD’s gains stopped at the resistance level of 1.0385 and settled at 10360 at the time of writing. I continue to see euro growth facing weakness as the fallout from the Russian-Ukrainian war has not stopped. Advertisement WANT TO TRY MT5 YOURSELF? Open Demo Now Yesterday, Eurozone PMI indices confirmed that the bloc’s economy shrank in November, but the extent of the decline was not as steep as the market expected. SandP’s global purchasing managers’ index (PMI) came in at 7.3, up from the consensus estimate of 6.0 and October’s 6. . The Services PMI came in at 8.6, beating expectations of 8 and unchanged from October. The composite PMI reading – which balances data to give a better picture of macroeconomic conditionsis 7.8, ahead of the consensus of 7 and above 7.3 in October, and a reading below 50 indicates a contraction. Chris Williamson, Chief Economist at SandP Global Market Intelligence, says: „A further decline in business activity in November increases the likelihood that the eurozone economy will slide into recession.” SandP Global says the data confirms a fifth consecutive month of decline in business, but the slowdown was moderate. There were some positive signs, such as a decrease in the number of new businesses, a reduction in supply constraints and an improvement in business confidence in the coming year. „However, business sentiment remained bleak from a historical perspective, with demand continuing to contract sharply, hampering employment during the month,” SandP Global said. Economic pressures begin to ease Improved supply chains have led to economic cost pressures beginning to ease as reported business costs grow at their slowest pace in 1 months. This, in turn, allowed retail price inflation to slow, although inflation remained high. German factories reported their first improvement in supplier activity since July 2020. But Germany posted the largest decline in eurozone business activity, with a composite price index of 6. . Manufacturing fell in France as the Composite PMI rose to 8.8, marking the first decline in business activity since February 2021. Meanwhile, Fawad Razakzadeh, analyst at City Index, said: „The latest macroeconomic data from Europe continues to paint a gloomy picture, with PMI for France, Germany and the entire Eurozone remain below 50 in contraction territory. While the PMI data still manages to beat expectations, that’s only because we’re seeing an improvement from a very low base. Analysis of EUR/USD today: Eurodollar price EUR/USD is moving in an ascending channel according to the development of the daily chart. Stability is above the psychological resistance of 1.0 00, which supports the upward movement of the bulls. Technical indicators are moving to an overbought level. I still prefer to sell the Eurodollar at any bullish level and the closest targets for the bulls are currently 1.0 55 and 1.0520 and 1.0600. On the other hand, according to the performance of the same period, breaking the support level of 1.0100 is important for the bears to take control and stop the efforts of the bulls so far. Today is a holiday in America, which affects market liquidity and investors’ risk appetite. Germany’s Ifo reading is announced for the euro area.

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