Throughout Wednesday, EUR/USD traded sideways, reflecting the absence of US market activity. As the week progresses, attention shifts to Thursday’s release of US unemployment applications, where market consensus suggests a slight decline to 235K from the previous week’s 242K, though still above the recent four-week average of 227K.
Looking ahead to Friday, significant market-moving data is expected with the release of Purchasing Managers Index (PMI) figures from both Europe and the US. These reports are anticipated to provide fresh insights into economic activity on both sides of the Atlantic, potentially influencing market sentiment.
Technical analysis indicates that EUR/USD faces immediate resistance near the 200-hour Exponential Moving Average (EMA) at 1.0767, posing a barrier to surpassing the 1.0750 level. Despite a recent uptick from lows around 1.0670, upward momentum remains constrained. Bullish prospects could strengthen towards the 200-day EMA around 1.0800, yet the pair faces formidable resistance near 1.1140, reflecting highs from late December.
In the event of sustained resistance and a reversal in momentum, EUR/USD might test lower levels for 2024, potentially dipping below 1.0600.
As the trading week progresses, market participants await these pivotal data releases to gauge the next major moves for the EUR/USD pair amid ongoing global economic dynamics.