Published on Mar 27, 2023

Daily Analysis For EUR/USD 27-03-2023

EUR/USD Analysis

Economic Events and Scenario for EUR/USD

Economic Events: -

GMT	Event	Impact	Currency
2:30	(China) Industrial Profits (YTD) YoY	Low	CNY
6:00	(Finland) Consumer Confidence	Low	EUR
6:00	(Finland) Business Confidence	Low	EUR
6:00	(Japan) Leading Economic Index	Low	JPY
6:00	(Japan) Coincident Index	Low	JPY
9:00	(Germany) Ifo Current Conditions	Low	EUR
9:00	(Germany) Ifo Business Climate	High	EUR
9:00	(Germany) Ifo Expectations	Low	EUR
9:00	(Euro Area) Loans to Companies YoY	Low	EUR
9:00	(Euro Area) M3 Money Supply YoY	Low	EUR
9:00	(Euro Area) Loans to Households YoY	Low	EUR
9:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
9:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
9:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
9:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
9:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
9:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
9:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
11:00	(United Kingdom) CBI Distributive Trades	Medium	GBP
11:00	(France) Jobseekers Total	Low	EUR
11:00	(France) Unemployment Benefit Claims	Medium	EUR
11:00	(Greece) Total Credit YoY	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
15:40	(Euro Area) ECB Elderson Speech	Medium	EUR
16:00	(Euro Area) ECB Schnabel Speech	Medium	EUR
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
18:00	(United States) 2-Year Note Auction	Low	USD
18:00	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
22:00	(United States) Fed Jefferson Speech	Medium	USD

Today's Scenario: - In the Tokyo session, the EUR/USD pair is exhibiting a sideways movement below the 1.0800 level. This significant currency pair has adopted a trend of indecisiveness, much like the subdued US Dollar Index (DXY). Despite the preliminary S&P Global PMI displaying a positive outlook and the expansion of financial support for mid-size United States banks, the DXY has failed to continue its upward momentum.

Buy Scenario: - At present, the EUR/USD buyers are not active unless the quote remains below the previous support line, which is around 1.0820. However, for the bulls to make significant progress, they must overcome multiple tops marked around 1.0930, followed by the yearly high of 1.1033.

Overall, the EUR/USD pair is expected to decrease in value, but the area between the DMA convergence mentioned earlier and the support-turned-resistance line will be crucial for traders to observe, still we do not advise to buy EUR/USD currency pair.

Sell Scenario: - During Monday's mid-Asian session, the EUR/USD pair retreated from its intraday high and declined to 1.0770. This move consolidated the pair's first daily gains in three days, and confirmed the previous day's downside break of a one-week-old ascending trend line. Despite this, the RSI (14) line remained steady.

The EUR/USD bears face a challenging obstacle around 1.0730, where the 50-DMA and the 10-DMA converge. This level may be difficult to break, especially with bullish MACD signals.

Even if the quote drops below 1.0730, the pair sellers could encounter resistance at the tops marked during early March around 1.690 before being directed to an upward-sloping support line from early January, which is currently around 1.0560. Till then we do not advise selling EUR/USD.

Support and Resistance Level: -