FX.co ★ EUR/USD

The EUR/USD pairing holds a pivotal stance, especially amidst the recent oscillations sparked by the unveiling of economic indicators and geopolitical pressures. Tuesday's dawn in the Asian markets witnessed a notable downturn for the EUR/USD, plunging to test its February lows, only to stage a resilient resurgence, reclaiming ground back towards the 1.0800 threshold, Analyzing PMI Figures and Geopolitical Influences The Pan-European Composite PMI indicated a slight uptick, but the Manufacturing component declined. Similarly, US PMI figures painted a mixed picture, adding to the uncertainty surrounding the EUR/USD pair's trajectory. Moreover, looming geopolitical tensions in the Middle East and expectations of prolonged higher interest rates by global central banks add further complexity to the market dynamics. Technical Analysis and Key Levels to Watch Technical analysis offers valuable insights into potential price movements. Traders are closely monitoring the 200-day Simple Moving Average (SMA), considering a sustained breakthrough above this level as a signal for bullish momentum. However, the market remains sensitive to geopolitical developments and global monetary policy shifts without relevant US macro data.

Should the EUR/USD rally upwards, it holds the potential to challenge critical resistance thresholds, notably the 100-day Exponential Moving Average (EMA) poised at 1.0855 and the weekly zenith established at 1.0906. A breach beyond these pivotal points might set the stage for a significant ascent towards formidable resistance at 1.0850, paving the way for further advances towards the 38.2% Fibonacci retracement level at 1.0861, signalling a prospective continuation of the upward trend. Downside Risks and Support Levels Conversely, a downward movement could be seen in the pair testing immediate support levels, including the 23.6% Fibonacci retracement level at 1.0841 and the nine-four-hour Exponential Moving Average (EMA) at 1.0821. A breach below these levels may lead to further downside, with support zones around the 38.2% Fibonacci retracement level at 1.0812 and the psychological level of 1.0800.