FX.co ★ EUR/USD

EURUSD On Thursday, the Euro (EUR) continued its losses against the US dollar (USD) for the third day in a row, hitting the 1.1680 region, its lowest level since April 13. Investor confidence is being damaged by the stalled US-Iran peace process, and the Euro is under more pressure due to disappointing economic activity statistics in the Eurozone. The manufacturing sector has unexpectedly improved, according to the Eurozone preliminary HCOB Purchasing Managers’ Index (PMI). It has risen to its highest level in almost 4 years, at 52.2, from 51.6 in March, defying predictions of a minor decline to 50.8. Conversely, services activity has decreased at a rate of 47.4 from 50.2 in March, falling short of the 49.8 figure predicted by the market. The gain in manufacturing activity has been countered by these numbers, which have caused the composite index to drop from 50.7 to 48.6, which is also lower than the 50.2 that the market consensus had predicted. In the meantime, the blockage of the Strait of Hormuz continues to drive up oil prices and put additional strain on economies that import crude, such as those in the Eurozone. An already fragile ceasefire is being strained as a result of the US military rerouting three Iranian tankers in Asian waters and Iran seizing two ships on Wednesday. Ahead of the preliminary US S&P Global PMI statistics for April, the US weekly jobless claims, which are anticipated to show a small uptick in new jobless benefit recipients, are likely to offer some diversion from the geopolitical landscape later on Thursday. EUR/USD is further declining after breaking the rising trendline from late-March lows. With the Relative Strength Index (RSI) getting closer to oversold levels and the Moving Average Convergence Divergence (MACD) histogram displaying widening red bars, momentum studies indicate an increasing amount of negative pressure. Ahead of the April 8 low at 1.1643, bears are currently attempting support at the April 13 lows, roughly 1.1680. The next target is the region between 1.1505 and 1.1525, which saw downside efforts in early April. On the upside, bullish reactions are likely to be challenged by the reverse trendline, which meets Tuesday's lows at 1.1720. A confirmation above that region would relieve bearish pressure and restore attention to Wednesday's highs, which were around 1.1765.