EURUSD

The EUR/USD pair is under the influence of PMI data this week. While Germany and the US manufacturing PMI data remain in contraction territory, the service sector data display a positive momentum. The manufacturing contraction in Germany increases expectations for the ECB to move towards more aggressive rate cuts. On the other hand, the US service sector continues to grow, sparking curiosity regarding the Fed meeting. Data such as the German ZEW Economic Sentiment from the Eurozone and core retail sales from the US could influence the direction of the pair.

From a technical perspective, the EUR/USD pair is trading at the 1.0500 level. The main support is at the 1.048 level; if this level is breached, 1.044 and 1.039 levels could be monitored as supports. In upward movements, the 1.0545 and 1.06 levels should be followed as resistance. The RSI indicator is at the 38 level, showing a slightly negative outlook. Compared to the previous day, the pair has shown a 0.04% decrease. Sustaining below 1.0440 could lead to a deeper decline, while in upward movements, the 1.06 resistance might be a significant barrier.