EURUSD on Wednesday dropped -0.37% to 1.0606. Selling pressure. Why it matters.

EURUSD by TradingView

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.37%	-39.7 Pips
Week to-date	-0.81%	-86.9 Pips
February	-2.36%	-256.6 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD Gross Domestic Product Annualized

What happened lately

EUR IFO – Business Climate in February rose to 91.1 points compared to previous figure 90.1 points (revised from 90.2 points). Source
📆 🇺🇸 USD S&P Global Composite PMI in February preliminary estimate exceed forecast and rose to 50.2 points compared to previous figure 46.8 points in January. Source
📆 🇺🇸 USD S&P Global Services PMI in February preliminary estimate exceed forecast and rose to 50.5 points compared to previous figure 46.8 points in January. Source
📆 🇩🇪 EUR ZEW Survey – Economic Sentiment in February exceed forecast and rose to 28.1 points compared to previous figure 16.9 points in January. Source
📆 ☢️ 🇩🇪 EUR S&P Global/BME Manufacturing PMI in February preliminary estimate below forecast and dropped to 46.5 points compared to previous figure 47.3 points in January. Source
📆 🇪🇺 EUR Consumer Confidence in February preliminary estimate improved to -19 points compared to previous figure -20.9 points in January. Source

What can we expect from EURUSD today?

EURUSD on Wednesday dropped -0.37% to 1.0606. Price is below 9-Day EMA while Stochastic is falling but in oversold zone.

Updated daily direction for EURUSD looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at 1.05814 (S1) with break below could see further selling pressure towards 1.05568 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.0664 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. EURUSD need to break on either side to indicate a short-term bias. A close below 1.0598 would indicate selling pressure.

For the week to-date, take note that EURUSD is bearish as the pair posted lower by -0.81%.

Key levels to watch out:

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Minutes of the Federal Open Market Committee, January 31–February 1, 2023 Source: Federal Reserve
In February 2023, the business climate in the building construction industry has deteriorated again Source: INSEE
In February 2023, the business climate in retail trade and in trade and repair of vehicles as a whole has slightly improved Source: INSEE
In February 2023, the business climate in manufacturing industry has slightly improved again Source: INSEE
In February 2023, the business climate in France has improved a little and the employment climate remains favourable Source: INSEE
In February 2023, the business climate has improved a bit again in services Source: INSEE
Production in construction down by 2.5% in the euro area and by 2.0% in the EU Source: Eurostat

Last updated: 11:32 pm UTC, 22-Feb 2023

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