EURUSD Stalls - Investors Eye Key Data and Events

London: 5 March 2024 (TraderMade): The Euro (EUR) trades in a narrow range against the US Dollar (USD) this week as investors await critical central bank decisions and economic data releases from both sides of the Atlantic. This cautious stance comes amidst a busy week packed with events that could rock the currency pair.

EURUSD plummeted 0.18% from yesterday and trades at 1.08476.

Key Takeaways

• ECB meeting and US jobs data eyed: Investors are waiting for the European Central Bank's (ECB) policy decision on Thursday and the US jobs report on Friday for potential clues about future interest rate movements.
• EURUSD finds support around 1.08: Despite hovering around $1.085, analysts suggest the Euro could find support at the 9-day EMA (1.0832) and the psychological level of 1.0800.
• Bullish signs for EURUSD, but resistance looms: Technical indicators hint at a potential upside for the Euro. However, resistance at 1.0864 (38.2% Fibonacci retracement) and the psychological level of 1.0900 could be hurdles.

EUR Stalled, Dollar Steady

The Euro has been unable to break through the $1.086 resistance level this week despite positive signs from a recent survey indicating a recovery in Eurozone business activity. The US Dollar, on the other hand, has remained relatively steady, supported by expectations of continued strength in the US labor market.

EURUSD Stalls in Narrow Range Over the Past Week

The EURUSD pair exhibited a narrow trading range over the past week, starting at 1.08442 on 27 February and ending at 1.08476 on 5 March 2024. Despite some intraday fluctuations, the overall movement was confined within a 23-pip range (1.08332 - 1.0867).

This sideways movement suggests indecision among investors, likely awaiting key data releases and central bank decisions scheduled for later this week.

While minor attempts were made to break above the 1.086 resistance level, the pair ultimately retreated, finding support around 1.080.

Looking ahead, upcoming events like the ECB policy meeting and the US jobs report will be crucial in determining the Euro's next move against the Dollar.

ECB Decision and US Data in Focus

The upcoming ECB meeting on Thursday is a pivotal event, as any hints about future rate cuts could impact the Euro.

Similarly, the US jobs report on Friday will be closely scrutinized, with a stronger-than-expected number potentially boosting the Dollar.

Will the Euro Find Its Footing?

The near-term direction of EURUSD remains uncertain, with investors adopting a wait-and-see approach.

The data and events throughout the week, particularly the ECB decision and US jobs report, will likely be the key factors influencing the pair's next move.

Summary

This week, the Euro (EUR) trades sideways against the US Dollar (USD) as investors cautiously await vital events like the ECB meeting and US jobs data.

While there have been minor attempts to break through resistance levels, both currencies are finding support at their respective levels. The upcoming data releases will be crucial in determining the near-term direction of EURUSD.