Published on Apr 24, 2023

Daily Analysis For EUR/USD 24-04-2023

EUR/USD Analysis

Economic Events and Scenario for EUR/USD

Economic Events: -

GMT	Event	Impact	Currency
06:00	(Finland) PPI YoY	Low	EUR
06:00	(Finland) Export Prices YoY	Low	EUR
06:00	(Finland) Import Prices YoY	Low	EUR
07:00	(Lithuania) Industrial Production YoY	Low	EUR
07:00	(Lithuania) Industrial Production MoM	Low	EUR
09:00	(Germany) Ifo Current Conditions	Low	EUR
09:00	(Germany) Ifo Expectations	Low	EUR
09:00	(Germany) Ifo Business Climate	High	EUR
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
09:30	(Slovenia) Business Confidence	Low	EUR
13:30	(Canada) New Housing Price Index MoM	Medium	CAD
13:30	(Canada) New Housing Price Index YoY	Medium	CAD
13:30	(United States) Chicago Fed National Activity Index	Medium	USD
13:30	(Canada) Wholesale Sales MoM	Low	CAD
14:00	(Belgium) Business Confidence	Low	EUR
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:30	(United States) Dallas Fed Manufacturing Index	Medium	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
17:00	(Canada) 3-Year Bond Auction	Low	CAD
18:00	(El Salvador) Balance of Trade	Low	USD

Today's Scenario: - During the Tokyo session, the EUR/USD pair was unable to reach the significant psychological resistance level of 1.1000. As a result, the major currency pair experienced a decline, falling below 1.0990. This decline can be attributed to the recent recovery move in the US Dollar Index (DXY), which managed to defend the crucial support level of 101.63. However, for investors to gain confidence in the recovery of the USD Index, it needs to pass several filters.

In early Asia, S&P500 futures have continued to decline, indicating a negative market sentiment. This decline comes ahead of the quarterly results from tech giants such as Amazon, Facebook, and Google, which are expected to keep investors preoccupied this week as they report their first-quarter CY2023 results.

Buy Scenario: - For the EUR/USD pair to aim for the First Major Resistance Level (R1) at $1.1009, it must steer clear of the $1.0973 pivot. A bullish session can be signaled if the pair moves past Friday's high of $1.09938. However, a pre-US session breakout will require supportive euro area economic indicators and hawkish comments from the European Central Bank (ECB).

In the event of an extended rally, the bulls will likely attempt to breach the Second Major Resistance Level (R2) at $1.1029 and the resistance at $1.1050. The Third Major Resistance Level (R3) is positioned at $1.1086, till we do not advise to buy EUR/USD currency pair.

Sell Scenario: - If the pivot level is breached, the First Major Support Level (S1) at $1.0953 will come into play. However, unless there is a sell-off driven by economic data, the EUR/USD pair is expected to remain above the sub-$1.09 level. The Second Major Support Level (S2) at $1.0917 is likely to limit the downside. The Third Major Support Level (S3) is located at $1.0861. Till then we do not advise selling EUR/USD.

Support and Resistance Level: -