EUR/USD Under Pressure Ahead of US ISM PMI | Key Levels.
EUR/USD Stays Under Pressure Near 1.1690 Ahead of U.S. ISM Manufacturing PMI
What’s Happening
EUR/USD remains subdued at the start of the week, hovering near four-week lows around 1.1690 as investors adopt a cautious stance ahead of key U.S. economic data. With the U.S. ISM Manufacturing PMI due later today, the pair continues to struggle to regain upside momentum following last week’s pullback.
Market Overview (Fundamental Analysis)
The euro has opened the new week with the same muted tone seen toward the end of last week, as the U.S. dollar maintains residual strength. Support for the greenback has come from solid U.S. home sales and jobless claims data, reinforcing expectations that the Federal Reserve will proceed with monetary easing at a very gradual pace.
Geopolitical headlines have added some background noise, with Venezuelan President Nicolás Maduro reportedly detained by U.S. forces and expected to appear before a U.S. court. U.S. President Donald Trump has warned that further action could follow if Venezuelan authorities do not cooperate with U.S. plans regarding the oil sector and drug enforcement. However, these developments have had limited impact on broader market sentiment.
Risk appetite remains relatively stable, with Asian equities trading higher and European markets pointing to a modestly positive open. In the FX space, attention is firmly on upcoming U.S. data, starting with the ISM Manufacturing PMI, while the December Nonfarm Payrolls report later this week is expected to be the key directional catalyst for EUR/USD.
Technical Snapshot (Daily / Short-Term Overview)
| Indicator | Reading / Value | Implication |
|---|---|---|
| Trend | Uptrend (ascending channel) | Broader bullish structure |
| Key Resistance | 1.1804 | Recent high / upside cap |
| Key Support | 1.1650 | Near-term demand zone |
| RSI (14) | Neutral | Lack of strong momentum |
| MACD | Neutral | Consolidation phase |
| Moving Averages | Below key SMAs | Short-term bearish pressure |
Technical outlook:
EUR/USD continues to trade below its key moving averages, suggesting near-term pressure persists despite the broader ascending channel. Momentum indicators remain neutral, pointing to consolidation rather than a decisive trend shift. Holding above 1.1650 would help preserve the medium-term bullish structure.
Trade Idea (Setup Section)
- Trade Type: Limit Buy
- Entry Level: 1.1660
- Take Profit: 1.1714
- Stop Loss: 1.1631
- Rationale: The pair is consolidating near a well-defined support zone within a broader uptrend, favoring a potential rebound if support holds.
Alternate Scenario:
A sustained break below 1.1650 could expose deeper downside toward 1.1580, delaying any recovery attempts.
What to Watch Next (Forward Outlook)
- U.S. ISM Manufacturing PMI
- U.S. labor market data, especially Nonfarm Payrolls
- Federal Reserve policy expectations
- Overall U.S. dollar sentiment
Key Takeaway
EUR/USD remains under pressure near 1.1690, weighed down by ongoing U.S. dollar strength ahead of key data releases. While the broader trend remains constructive, near-term direction hinges on whether support around 1.1650 can hold.
Q&A (SEO-Optimized Section)
Why is EUR/USD under pressure today?
EUR/USD is trading lower as the U.S. dollar remains supported by strong recent U.S. data and cautious positioning ahead of the ISM Manufacturing PMI.
Is the EUR/USD outlook still bullish?
The broader EUR/USD technical outlook remains cautiously bullish, but short-term momentum is neutral to bearish while the pair trades below key moving averages.
What data could move EUR/USD next?
The U.S. ISM Manufacturing PMI and Friday’s U.S. Nonfarm Payrolls report are the main events likely to influence the EUR/USD forecast.
Disclaimer: This is market news content, not an article, and is provided for informational purposes only.