EUR/USD Price Outlook: Eyes on $1.0740 Support Amid Weak German Data and Key U.S. Reports
EUR/USD is trading near $1.0740 following a steep decline driven by weak German data.
The Eurozone reported a mixed set of PMI numbers on Wednesday, with the German Services PMI slightly beating expectations at 51.6, but Spanish Services PMI fell short at 54.9, missing the forecast of 56.6.
Adding to the pressure, German Factory Orders showed a surprisingly strong 4.2% rise, but German Industrial Production today came in at -1.1%, well below the anticipated 2.9%.
These numbers underscore continued volatility within the Eurozone’s economic outlook, weighing on EUR/USD sentiment.
https://twitter.com/PALabs_/status/1854290673006158238
Today, further volatility is expected as the market digests German Trade Balance and French Private Payroll data. Meanwhile, the ECB’s cautious stance on monetary policy, echoed by President Lagarde, suggests limited near-term support for the euro.
Key U.S. Data in Focus Amid Dollar Strength
In the U.S., the dollar continues to hold firm as investors look forward to jobless claims, with expectations set at 223,000 versus the previous 216,000. Preliminary Nonfarm Productivity is forecasted to rise to 2.6% from 2.5%, which could provide additional strength to the dollar if the data meets or exceeds expectations. Higher productivity and lower unemployment could reinforce the dollar’s appeal, placing further downward pressure on EUR/USD.
Given the strong dollar backdrop, EUR/USD faces significant resistance at $1.0780. On the support side, a break below $1.0704 could signal further declines.
https://twitter.com/EddieTofpik/status/1854059756756812117
Daily Technical Outlook: EUR/USD – November 7, 2024
EUR/USD trades near $1.0741 after recent volatility. The pair is showing bearish momentum, hovering close to key support at $1.0740. Immediate resistance is at $1.0780, with stronger barriers at $1.0810 and $1.0830. If the pair clears these levels, a recovery may ensue.
On the downside, $1.0704 serves as immediate support. A sustained break below this could expose further support levels at $1.0660 and $1.0645, intensifying the bearish outlook. The 50-day Exponential Moving Average (EMA) at $1.0830 currently caps the upside, adding to the selling pressure.
The Relative Strength Index (RSI) at 44.08 indicates a neutral-to-bearish bias, showing room for further downside but with potential for consolidation if support holds.
Conclusion: EUR/USD remains under pressure, with a bearish outlook prevailing as long as it trades below $1.0780. Focus remains on U.S. data releases and Eurozone economic sentiment for directional cues.
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