- Commands to buy the Euro versus the US Dollar in 100-pip range are neutral (50% bullish / 50% bearish)
- The closest resistance for this pair is located at 1.0811
- At the same time, the closest support is currently placed at 1.0773
- Upcoming events on April 27: US Markit Services PMI (Apr)
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A set of red numbers came out on Thursday from the Euro zone's member states as fundamentals appeared to be worse than expected. Manufacturing activity in the 19-nation region continued to rise in April, albeit at a slower pace, as the flash manufacturing PMI for the Euro area fell to 51.9 points in the current month, down from 52.2 in March and compared with economists' expectations for a reading of 52.6 points.
In the Euro area's number one economy, Germany, preliminary data showed that the activity growth in the manufacturing sector continued at a somewhat slower pace, with the manufacturing PMI falling to 51.9, while the services sector also showed a slightly slow activity, with the corresponding indicator booking 54.4 points in April.
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US services sector activity to be released on Monday
Beginning of a new working week will be unsurprisingly silent in terms of any fundamentals. On Monday, markets are only going to look for US services PMI data for April, which is due to be published by Markit.Read More: Fundamental Analysis
EUR/USD likely to lose value with growing trading range
Judging from EUR/USD's developments that took place since July of the previous year, the pair is clearly trading downwards with a significant negative slope. At the same time, mid-March movements of the Euro have also confirmed a widening trading range of this currency pair, meaning it is currently hovering inside the broadening falling wedge pattern. By the end of June, the common European currency may surge up to the 1.13 mark where 100-day SMA and 23.6% Fibonacci retracement will most probably push the cross back in the direction of 1-1.05 area. In the meantime, the Euro may hit 1:1 against the US Dollar as soon as September-October. However, a presence of dense zone of technical levels may also considerably influence the time-frame for this important event.Daily chart
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EUR/USD has eroded two important resistance lines on Thursday, by surging considerably above 1.08. As a result, it seems that strong bullish impetus was created by weekly PP at 1.0724, which allowed the pair to gain about 100 pips yesterday. However, there are important supply zones ahead of the price. They include last week's high at 1.0848 and 55-day SMA at 1.0945. Only closure above the latter level, however, is likely to change the near-term forecast to bullish.
Hourly chart
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Read More: Technical Analysis
EUR/USD sentiment jumps, pending orders are neutral
Pending orders to buy the Euro against the US Dollar in 100-pip range from the spot have also gained considerable ground (+13%) during past 24 hours and are now staying on a neutral level of 50%.
Spreads (avg,pip) / Trading volume / Volatility
Community is waiting for the Euro to trade mostly sideways this week
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Read More: Community Forecasts
Likerty, one of the community members participating in the survey, motivates his bullish outlook towards the common currency by saying that "the Euro still could test 1.0710/690 before taking higher." On the other hand, Daytrader21 is more bearish on the Euro. He points out that there is going to be "a range-bound action with resistance standing at 1.0800 and support at previous week's low around 1.0400 level."
Meanwhile, traders, who were asked regarding their longer-term views on EUR/USD between Mar 24 and Apr 24 expect, on average, to see the currency pair around 1.07 by the end of July. Though the majority of participants, namely 54% of them, believe the exchange rate will drop even below 1.06 in ninety days, with 26% alone seeing it below 1.02. Alongside, 25% of those surveyed reckon the price will trade in the range between 1.06 and 1.12 by the end of July of this year.
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