EUR/USD price struggles below $1.0530 resistance ahead of U.S. economic data
EUR/USD struggles below key resistance as markets await U.S. data.
EUR/USD price remains under pressure, struggling to gain traction as it hovers in between key technical levels.
The pair has been trapped below the critical 1.0530 resistance, which has capped gains for months, while support at 1.0460 remains intact. Today’s economic data releases, including U.S. CB Consumer Confidence and the Richmond Manufacturing Index, could dictate short-term price action. Given the 100-day EMA reinforcing resistance and RSI still in bullish territory, a decisive move is yet to set the tone for EUR/USD’s next trajectory.
The euro saw temporary gains on Monday after Germany’s conservative CDU/CSU alliance secured a political lead following Sunday’s federal election. However, the bullish momentum was short-lived. After a brief test of the 1.0530 resistance, price reversed lower to 1.0460, forming a daily bearish pin bar. The inability to break higher highlights the strength of this resistance level, which is now further reinforced by the 100-day EMA.
EUR/USD price chart. Source: tradinview.com
Throughout today’s Asian session, the pair has remained in a tight range, holding above the 1.0460 support, which is reinforced by the 50 EMA on the 4-hour chart and an upward trendline since the beginning of February.
EUR/USD price outlook: Breakout hinges on U.S. consumer and manufacturing data
Traders are eyeing U.S. CB Consumer Confidence and the Richmond Manufacturing Index, set for release later in the North American session. Consumer Confidence is expected to drop to 102.7 from the previous 104.1 reading, while the Richmond Manufacturing Index is projected at -3, slightly improving from -4. A weaker-than-expected Consumer Confidence reading could weigh on the U.S. dollar, offering EUR/USD an opportunity to retest 1.0530.
EUR/USD remains positioned for a potential breakout if it can overcome 1.0530. RSI on the daily chart remains in bullish territory, suggesting that buyers could attempt another push higher. However, failure to clear resistance may leave the pair vulnerable to a deeper decline. If support at 1.0460 breaks, EUR/USD could slide further, testing lower levels in the coming sessions.
EUR/USD found support at 1.0460 and surged 0.6% to a new February high of 1.0528. The pair gained as Germany’s election results boosted investor confidence.
