The EUR/USD and EURO STOXX 50 remain under pressure as Germany’s economic data weakens, raising concerns about eurozone growth. The European Central Bank (ECB) kept its Main Refinancing Rate at 2.90%, signaling a cautious stance. However, the ECB’s press conference failed to provide clear guidance on rate cuts, leaving markets uncertain.
Germany’s retail sales fell by 1.6%, significantly missing expectations and highlighting consumer demand concerns. Additionally, German inflation (Prelim CPI) slowed to 0.1% from 0.5%, increasing expectations for monetary easing.
Meanwhile, German unemployment rose by 11K, reflecting ongoing labor market strain. As a result, EUR/USD remains pressured below key resistance levels, while the EURO STOXX 50 faces headwinds from slowing economic momentum. Investors will closely monitor ECB policy signals and upcoming economic data for further direction.
EUR/USD is trading at $1.03859, down 0.03%, as the pair struggles to regain momentum below its pivot level of $1.0402. A bearish engulfing pattern has formed on the 4-hour chart, reinforcing downside pressure, while a symmetrical triangle breakout signals a continuation of the selling trend. Immediate support is at $1.0343, with a break below exposing $1.0306, a key level for further bearish sentiment.
On the upside, resistance at $1.0455 remains intact, with the 50-day EMA at $1.0421 acting as a near-term hurdle. The 200-day EMA at $1.0394 suggests a broader consolidation phase. Unless EUR/USD reclaims $1.0402, the bias remains bearish, with sellers likely to dominate in the short term.
EURO STOXX 50 is trading at 5,281.7, showing resilience as it holds above the 5,273 pivot level. The index remains within an upward channel, indicating a potential continuation of the bullish trend. A break above immediate resistance at 5,319 could pave the way for further upside, with the next target at 5,352.
On the downside, 5,252 serves as key support, with the 50-day EMA at 5,248 providing a near-term cushion. The 200-day EMA at 5,146 signals strong broader trend support. As long as the index remains above 5,273, buyers remain in control. However, a break below could shift sentiment, leading to a drop toward 5,187.
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