The EUR/USD is walking in the range
The euro is still the most vulnerable in the currency market. The euro has already fallen against all its major competitors at the previous trades, but showed a consolidation against the dollar. The Eurozone news plans to show the manufacturing sector PMI index definitive assessment for March. The forecasts suggest that there will be no changes and the indicators will remain at the levels which had been announced before that point out to a growth compared to the previous month.
The bears broke through the support near 1.0750-1.0770 and then they immediately tested this level upwards. After this level testing consolidation was formed the resistance around 1.0770-1.0790.
The support levels are 1.0610-1.0630, and the resistance levels are 1.0770-1.0790.
MACD is in a negative territory.
The pressure on the pair is still preserved and with it the risks of its decline at least to 1.0610-1.0630. This support breakthrough will lead to decrease towards 1.0480-1.0500. The only chance for the euro to correct above this level is the US labor market weak data.
At the beginning of the trades the British pound also declined against the dollar, but having received a support from the British economic news the pound leveled losses and even slightly strengthened against the US dollar at the end of the day. The British statistics starts to publish data that show the US March economic activity level. The first indicator is the production sector purchasing managers index (PMI) is expected with an increase to 54.3 after 54.1 in February.
The pair pound/dollar remained under pressure, but bears failed to get rid of the bids that are near the support around 1.4750-1.4770.
The support levels: 1.4750-1.4770 and the resistance levels: 1.4900-1.4920.
The MACD indicator is in a negative territory.
The demand around 1.4750-1.4770 returned the pair to the resistance near 1.4880-1.4900. While the pair is trading below the psychological level of 1.5000-1.5020, the downside risks towards 1.4600-1.4620 will be preserved. The pair’s growth above will give the bulls a hope for the upward correction development.
The trades were in the narrow side corridor and showed insignificant movements but ended with a sharp decrease with an advantage of the Japanese currency. The Bank of Japan Tankan report showed that the weak yen has not improved the mood in the country big business – the manufacturers’ sentiment index remained unchanged in March, at the December report results level when it was fixed around 12 with the growth forecasts to 14.
The pair cannot determine its direction. Earlier this week it was trading near the 120th figure and then the pair tested the resistance level of 120.20-120.40. After this level testing there was a rebound back to 119.25-119.45.
The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.
The MACD indicator is in a neutral territory.
The dollar failed to rise above the level of 120.20-120.40 that preserves the risks of the level of 119.05-119.25 retesting. Nevertheless, we should not still speak about the dollar sales and its growth and ability to consolidate above 120.20-120.40 will signal about the uptrend resumption.