EUR/USD extends losses below 1.1700 and drops nearly 1% in the last three days.
Mixed Eurozone PMI data have failed to provide support to the Euro.
The closure of the Strait of Hormuz keeps pushing Oil prices higher, clouding the Eurozone's economic outlook.
The Euro (EUR) extends losses against the US Dollar (USD) for the third consecutive day on Thursday, reaching its lowest levels since April 13, at the 1.1680 area. The stagnated US-Iran peace process is undermining investors' sentiment, while, in the Eurozone, business activity data has disappointed, adding pressure on the Euro.
The Eurozone preliminary HCOB Purchasing Managers’ Index (PMI) has shown an unexpected improvement in the manufacturing sector, which has jumped to its highest level in nearly 4 years, at 52.2, from 51.6 in March, beating expectations of a slight pullback to 50.8.
Services activity, on the other hand, has contracted at a 47.4 pace from 50.2 in March, below market expectations of a 49.8 reading. These figures have offset the improvement of manufacturing activity, sending the composite index down to 48.6 from 50.7 in the previous month, also below the 50.2 anticipated by the market’s consensus.
Meanwhile, the closure of the Strait of Hormuz keeps pushing Oil prices higher, and adding pressure to Crude-importing economies like those in the Eurozone. Iran seized two ships on Wednesday, and the US military redirected three Iranian tankers in Asian waters in a tit-for-tat dynamic that is straining an already tense ceasefire.
Later on Thursday, the US weekly Jobless Claims, which are expected to show a moderate pickup in new unemployment benefit recipients, are likely to provide some distraction from the geopolitical scene ahead of the preliminary US S&P Global PMI figures for April.
Technical Analysis: EUR/USD pierces the bullish trendline support
EUR/USD has broken the upward trendline from late-March lows and is depreciating further. Momentum studies show a growing negative pressure, with the Relative Strength Index (RSI) approaching oversold levels and the Moving Average Convergence Divergence (MACD) histogram showing widening red bars.
Bears are now testing support at the April 13 lows, around 1.1680, ahead of the April 8 low, at 1.1643. Further down, the area between 1.1505 and 1.1525, which held downside attempts in early April, emerges as the next target.
On the upside, the reverse trendline, which meets Tuesday's lows around 1.1720, is likely to challenge bullish reactions. A confirmation above that area would ease bearish pressure and bring Wednesday's highs, around 1.1765, back into focus.
(The technical analysis of this story was written with the help of an AI tool.)
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