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EUR/USD Tests Near-Term Major Support Ahead of US ISM and PCE

This morning we have seen the release of German Unemployment Change in Feb, fell by 14K, beating expectations of a 10K fall. The German unemployment rate in Feb remains at 5.9%, in line with expectations.

EUR/USD has turned bearish since yesterday, as a result of the strengthening of the dollar.

The current price is nearing the near-term major support zone between 1.0500 – 1.0530, where provides a stronger support.

The level at 1.0500 is a crucial psychological level, the downtrend is likely to be held temporarily above the level.

The 4 hourly Stochastic Oscillator is below 20, suggesting a rebound.

The resistance level is at 1.0550, followed by 1.0565 and 1.0580.
The support line is at 1.0530, followed by 1.0515 and 1.0500.

We will see the release of a series of important US economic figures this afternoon.

The PCE and Core PCE in Jan, at 13:30 GMT. The Markit Manufacturing PMI in Feb, at 14: 45 GMT. The ISM Manufacturing PMI and ISM Prices Paid, at 15:00 GMT.

The figures will cause volatility to the movements the dollar and the dollar crosses.

With better-than-expected numbers, it will likely weigh on EUR/USD and test supports.
With lower-than-expected numbers, it will likely push EUR/USD up and test resistances.



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