FXEMPIRE
All
Ad
Advertisement
Advertisement
James Hyerczyk
Add to Bookmarks
EUR/USD

The Euro is trading lower on Wednesday after a report showed the Euro Zone economy may be in the midst of a double-dip recession as COVID-19 lockdowns continue to hammer the services industry, but some of the weakness in the single-currency was offset by a rise in optimism to a three-year peak on hopes for a wider vaccine rollout.

At 14:01 GMT, the EUR/USD is trading 1.2054, down 0.0036 or -0.30%.

Advertisement
Know where EUR/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IHS Markit’s Final February Composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, rose to 48.8 from January’s 47.8, above a flash reading of 48.1, but firmly below the 50 market separating growth from contraction.

A PMI for the Euro Zone’s dominant services industry, most affected by lockdowns, rose to 45.7 last month, ahead of January’s 45.4 and the 44.7 flash estimate but still well below breakeven.

The EU’s inoculation campaign has been marred by cuts in promised deliveries, rollout delays and some social resistance but there are expectations these will be ironed out and the composite future output index, which measures optimism, bounced to 67.0 from 64.2.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1952 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.2243.

The minor trend is also down. A trade through 1.1992 will reaffirm this downtrend.

The EUR/USD is currently testing the main retracement zone at 1.2074 to 1.2010. This zone is controlling the longer-term direction of the Forex pair.

The minor range is 1.2243 to 1.1992. Its 50% level at 1.2118 stopped the rally at 1.2113 earlier today.

The short-term range is 1.2349 to 1.1952. Its retracement zone at 1.2151 to 1.2197 is resistance.

Advertisement

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the EUR/USD into the close on Wednesday will be determined by trader reaction to 1.2074 and 1.2118.

Bearish Scenario

A sustained move under 1.2074 will indicate the presence of sellers. If this creates enough downside momentum then look for a move into 1.2010, followed closely by the minor bottom at 1.1992.

Bullish Scenario

A sustained move over 1.2074 will signal the return of buyers. If this rebound creates enough upside momentum then look for the move to possibly extend into 1.2113 to 1.2118. The latter is a potential trigger point for a surge into 1.2151.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker