Current trend
The European currency shows moderate growth against the US dollar during the Asian session, recovering from the predominantly "bearish" trading dynamics of recent days. EUR/USD is trading slightly above the average Monday levels and is preparing to end the week with almost zero results.
The focus of the market is on the EU summit in Brussels, which is expected to continue the discussion of new packages of sanctions against the Russian economy today. In addition, the details of the implementation of the EU plan to phase out energy from the Russian Federation may be considered. The day before the President of the European Commission Ursula von der Leyen said that the EU is preparing such a plan with a possible date of 2027. The EU is also considering the possibility of centralized purchases of gas and other resources, which, according to von der Leyen, should have a positive impact on price stability.
Moderate support for the euro is provided by yesterday's optimistic macroeconomic statistics from Europe. Markit Manufacturing PMI in Germany in March declined from 58.4 to 57.6 points, which was better than market forecasts at the level of 55.8 points. The services sector also contracted less than expected: from 55.8 to 55 points, while the forecast was for a fall to 53.8 points. Markit PMI Composite in the euro area fell from 55.5 to 54.5 points, ahead of analysts' expectations at the level of 53.9 points.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is almost constant, remaining rather spacious for the current level of activity in the market. MACD indicator is growing keeping a weak buy signal (located above the signal line). Stochastic is showing similar dynamics while reversing upwards in the middle of its area.
Resistance levels: 1.1051, 1.1100, 1.1150, 1.1185.
Support levels: 1.1000, 1.0957, 1.0900, 1.0860.
The European currency shows moderate growth against the US dollar during the Asian session, recovering from the predominantly "bearish" trading dynamics of recent days. EUR/USD is trading slightly above the average Monday levels and is preparing to end the week with almost zero results.
The focus of the market is on the EU summit in Brussels, which is expected to continue the discussion of new packages of sanctions against the Russian economy today. In addition, the details of the implementation of the EU plan to phase out energy from the Russian Federation may be considered. The day before the President of the European Commission Ursula von der Leyen said that the EU is preparing such a plan with a possible date of 2027. The EU is also considering the possibility of centralized purchases of gas and other resources, which, according to von der Leyen, should have a positive impact on price stability.
Moderate support for the euro is provided by yesterday's optimistic macroeconomic statistics from Europe. Markit Manufacturing PMI in Germany in March declined from 58.4 to 57.6 points, which was better than market forecasts at the level of 55.8 points. The services sector also contracted less than expected: from 55.8 to 55 points, while the forecast was for a fall to 53.8 points. Markit PMI Composite in the euro area fell from 55.5 to 54.5 points, ahead of analysts' expectations at the level of 53.9 points.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is almost constant, remaining rather spacious for the current level of activity in the market. MACD indicator is growing keeping a weak buy signal (located above the signal line). Stochastic is showing similar dynamics while reversing upwards in the middle of its area.
Resistance levels: 1.1051, 1.1100, 1.1150, 1.1185.
Support levels: 1.1000, 1.0957, 1.0900, 1.0860.