By Fast Brokers – The EUR/USD is hovering around its psychological 1.35 area as investors await America’s Manufacturing PMI data. Despite this being a session filled with data releases, the EU only printed German Retail Sales, which came in 4 basis points below analyst expectations. Hence, the EUR/USD seems to be following its broad-based Dollar correlation. However, the Euro is presently being outperformed by the Pound, highlighted by the continual slide of the EUR/GBP. Part of the Euro’s relative weakness likely stems from recent declines in Greek bonds. Yields on Greek bonds have risen since the EU’s pact, placing some downward pressure on the Euro since the EU may be forced to act on its agreement should Greek bonds continue their decline. Meanwhile, it will be interesting to see how the EUR/USD reacts to upcoming U.S. data. Should U.S. data outperform, this could place downward pressure on the EUR/USD with investors favoring the U.S. economy due to fiscal uncertainties in the EU. Although volume will likely be on the light side tomorrow due to banking holidays, the U.S. will release its highly anticipated Non-Farm Employment Change and headline Unemployment Rate data. If U.S. employment data impresses, this could also lead investors towards the Dollar, and vice versa. Due to the anticipation of light volume, investors may want to prepare for high volatility.
Technically speaking, the EUR/USD is testing the patience of its highly psychological 1.35 level with multiple downtrend lines hanging overhead. The EUR/USD also faces technical barriers in the form of 3/30, 3/23, and 3/19 highs. As for the downside, the EUR/USD has multiple uptrend lines serving as technical cushions along with intraday and 3/25 lows.
Present Price: 1.3511
Resistances: 1.3512, 1.3521, 1.3534, 1.3547, 1.3562, 1.3569
Supports: 1.3496, 1.3486, 1.3477, 1.3469, 1.3459, 1.3446
Psychological: March lows, 1.35, 1.34
(click chart to enlarge)
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