Key Highlights
- EUR/USD started a downside correction from the 1.0950 resistance zone.
- It traded below a key bullish trend line with support at 1.0880 on the 4-hour chart.
- GBP/USD started a minor downside correction from the 1.3000 resistance.
- The US Manufacturing PMI could drop to 51.9 from 52.7 in March 2025 (Preliminary).
EUR/USD Technical Analysis
The Euro struggled to continue higher above 1.0950 against the US Dollar. EUR/USD started a downside correction below the 1.0900 level.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.0880. There was a move below the 1.0880 support, but the pair is still well above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The pair tested the 1.0800 zone and started a consolidation. On the upside, the pair is facing resistance near the 1.0840 level. The next major resistance is near the 1.0860 level.
The main resistance is now forming near the 1.0895 zone. A close above the 1.0895 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0920 resistance.
On the downside, immediate support sits near the 1.0795 level. The next key support sits near the 1.0765 level. Any more losses could send the pair toward the 1.0750 level.
Looking at GBP/USD, the pair started a short-term downside correction after the bulls failed to clear the 1.3000 resistance zone.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for March 2025 (Preliminary) – Forecast 48.0, versus 47.6 previous.
- Euro Zone Services PMI for March 2025 (Preliminary) – Forecast 51.0, versus 50.6 previous.
- US Manufacturing PMI for March 2025 (Preliminary) – Forecast 51.9, versus 52.7 previous.
- US Services PMI for March 2025 (Preliminary) – Forecast 51.2, versus 51.0 previous.
