RBA left rates on hold leaving Aussie indifferent. The market was overall steady on Monday and early Friday, looking forward to U.S. NFP report on Friday and U.S. President Donald Trump's meeting with the China's President Xi Jinping on Thursday. All the data related to the NFP will be closely watched until then. Sterling has been the worst performing currency following the soft manufacturing data amid Brexit negotiations.
E.U. Unemployment Drops to Near 8-Year Low
The euro was traded firmed against all the majors, apart from the Japanese yen which overperformed. The economic data presented yesterday from the European Union has been mainly as expected. The Markit manufacturing PMI for Eurozone met earlier estimate of 56.2 in March, while German factory orders also met preliminary figures of 58.3. Eurozone’s unemployment rate has continued to fall steadily to 9.5% in February from 9.6%, the lowest level since May 2009.
EUR/USD – Technical Outlook
Euro is trading within a narrow range of 50 pips against the U.S. dollar with upper boundary the 1.0700 psychological level and lower boundary the 1.0645 support barrier, the last two days. The EUR/USD pair had limited moves over yesterday’s session as it ended the day near its opening price level and had very low volatility, afterwards. Though, in the previous week, the pair plummeted more than 1.3% following the rebound on the 1.0906 resistance level which overlaps with the descending daily trend line.
Currently, the common currency pair is flattening and we expect an important economic data to see a run in either direction. A break below the rising trend line on the 4-hour chart will open the door for a retest of the 1.0500 psychological obstacle. Otherwise, a bullish move until 1.0720 is possible. MACD and RSI are moving with some weak momentum within the negative zone but both are slightly rising.
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