The EUR/USD pair started the week with a decline, failing to break the 1.0600 level and retreating back to the 1.0500 range, shedding nearly 0.8% on Monday. US economic data, including the Purchasing Managers Index (PMI), surpassed expectations but remained below the neutral 50.0 level, which fueled demand for the safe-haven US Dollar.
While European economic data remains light this week, several speeches from European Central Bank (ECB) officials are scheduled. Market participants are also anticipating the upcoming Nonfarm Payrolls (NFP) report on Friday, with labor and wage data due to influence market sentiment throughout the week.
The US ISM Manufacturing PMI for November rose to 48.4, its highest in five months, surpassing the previous reading of 46.5 and the forecast of 47.5. However, the PMI remains below 50.0, signaling that most businesses still anticipate a decline in economic activity in the coming months, which continues to support the US Dollar.
From a technical perspective, EUR/USD remains under pressure near the 1.0500 level after a brief attempt at a bullish recovery. The pair’s recent rally was limited, and it has only managed one positive weekly close after hitting multi-year lows near 1.0330. The 50-day and 200-day Exponential Moving Averages (EMA) have formed a bearish cross, with the 50-day EMA heading downward toward 1.0700, while the 200-day EMA is capping the upside near 1.0840.
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