The EUR/USD currency pair is currently at 1.10551. The release of conflicting Purchasing Managers’ Index (PMI) data from the United States has dampened some of the market’s positive outlook. Traders are now eagerly awaiting the release of the ISM Manufacturing and Services PMI data in August.

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• Mixed PMI data from the US tempers some optimism, with the market now eyeing ISM Manufacturing and Services PMI release in August.

The pair currently trades last at 1.10551.

The previous day high was 1.1147 while the previous day low was 1.106. The daily 38.2% Fib levels comes at 1.1093, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1114, expected to provide resistance.

The EUR/USD slides for the fifth straight session as recessionary Eurozone (EU) fears arose. Simultaneously, traders prepare for the release of the US Federal Reserve (Fed) monetary policy decision on Wednesday, followed by the European Central Bank (ECB) on Thursday. The EUR/USD is trading at 1.1051 after hitting a daily high of 1.1086.

Wall Street continues to drive market mood, with earnings of mega-tech companies, like Microsoft and Google underpinning US bourses. Economic data from the United States (US) showed that consumer confidence is rising, despite foreseeing an upcoming recession in the US, as revealed by the Conference Board (CB) poll. That and house prices boosted the US Dollar (USD) early in the North American session, as the EUR/USD dived to a new weekly low of 1.1020.

The EUR/USD extended its fall on Monday after S&P Global PMIs in the US were mixed, as manufacturing activity improved, but services slumped. Nevertheless, the three-point rise in Manufacturing PMI, from 46.1 to 49, cushioned the Composite PMI reading to 52, from June’s 53.2. Even though figures painted an optimistic outlook in the US, traders would eye the ISM Manufacturing and Services PMI release at the beginning of August.

Contrarily, the Eurozone (EU) is portraying a dismal scenario with manufacturing activity across France, Germany, and the whole EU missing estimates and plunging deeper into recessionary territory, igniting fears that a recession can hit the bloc. Last week’s inflation data pointing downwards, and a sudden change of stance amongst ECB’s most hawkish members in Klas Knot and Joachim Nagel, shifting to a data-dependant mode, could weaken the Euro (EUR) in the near term.

In the meantime, early in the Europe session, business confidence in Germany slipped further, a headwind for the EUR/USD. Analysts warned that Germany’s economy is struggling to recover from a recession, as the Ifo Business Climate stood at 87.3, below the 88.0 consensus.

Given the backdrop, the Federal Reserve is expected to deliver a 25 bps rate increase, with traders eyeing Fed Chair Jerome Powell’s press conference for clues regarding the forward path of monetary policy. Across the pond, the ECB is also expected to lift rates by 25 bps on Thursday, but odds for September continued to diminish as the EU’s economy decelerates.

From a technical standpoint, the EUR/USD is neutrally biased, though it halted its ongoing downtrend at the 20-day Exponential Moving Average (EMA) at 1.1058. A daily close below the latter will expose key support levels, like the 1.1000 figure, followed by the 50-day EMA at 1.0966. Conversely, if EUR/USD buyers stepped in at that level, the major could edge toward the 1.1100 mark, followed by the test of the 1.1200 mark.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1053 at the time of writing. Pair opened at 1.1065 and is trading with a change of -0.11 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.1037, 50 SMA 1.0898, 100 SMA @ 1.0886 and 200 SMA @ 1.0695.

The previous day high was 1.1147 while the previous day low was 1.106. The daily 38.2% Fib levels comes at 1.1093, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1114, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1034, 1.1004, 1.0948
• Pivot resistance is noted at 1.1121, 1.1178, 1.1208

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