EUR/USD Under Pressure Ahead of US PMI | Key Levels & Trade.
EUR/USD Trades Under Pressure Ahead of Key US Manufacturing PMI
What’s Happening
EUR/USD remains on the defensive during Friday’s European session, hovering near 1.1720 as traders await the release of US Manufacturing PMI data. The pair has pulled back from late-December highs above 1.1800, with subdued liquidity and cautious positioning dominating early New Year trading.
Market Overview (Fundamental Analysis)
The euro has come under renewed pressure following weaker-than-expected Eurozone manufacturing data, including disappointing final HCOB PMI readings from Germany and the broader bloc. The data highlighted the continued drag from the manufacturing sector, reinforcing concerns about its diminishing contribution to Eurozone growth.
Despite the near-term softness, EUR/USD remains not far from its three-month high at 1.1808, recorded just before Christmas. Over the course of 2025, the US dollar weakened sharply against the euro, pressured by concerns over US trade policy uncertainty, signs of slowing economic momentum, and policy divergence between the European Central Bank (ECB) and the Federal Reserve.
Attention now turns to the final US S&P Global Manufacturing PMI, which could influence short-term dollar sentiment. A stronger-than-expected reading may offer the greenback temporary support, while a softer outcome could revive upside interest in EUR/USD.
Technical Snapshot (Daily / Short-Term Overview)
| Indicator | Reading / Value | Implication |
|---|---|---|
| Trend | Uptrend (ascending channel) | Broader bullish structure |
| Key Resistance | 1.1804 | Recent peak / upside barrier |
| Key Support | 1.1680 | Near-term demand zone |
| RSI (14) | Neutral | Lacking strong momentum |
| MACD | Neutral | Consolidation phase |
| Moving Averages | Below short-term SMAs | Short-term pressure |
Technical outlook:
EUR/USD remains within a broader ascending channel, suggesting the dominant trend is still constructive. However, trading below key moving averages and neutral momentum indicators point to ongoing consolidation. A firm hold above 1.1680 would help preserve upside potential, while a break lower could trigger a deeper pullback.
Trade Idea (Setup Section)
- Trade Type: Limit Buy
- Entry Level: 1.1701
- Take Profit: 1.1804
- Stop Loss: 1.1652
- Rationale: The pair is consolidating near a key support zone within a broader uptrend, favoring a potential continuation higher if support holds.
Alternate Scenario:
A sustained break below 1.1680 could open the door for a deeper correction toward 1.1600 before buyers potentially return.
What to Watch Next (Forward Outlook)
- US S&P Global Manufacturing PMI (final)
- US dollar reaction to incoming macro data
- ECB and Federal Reserve policy expectations
- Liquidity conditions during the early New Year period
Key Takeaway
EUR/USD remains under short-term pressure near 1.1720, but the broader bullish structure is intact as long as 1.1680 holds. The upcoming US Manufacturing PMI may act as the next catalyst for directional movement.
Q&A (SEO-Optimized Section)
Why is EUR/USD under pressure today?
EUR/USD is facing selling pressure after weak Eurozone manufacturing data, with traders awaiting US Manufacturing PMI for further direction.
Is the EUR/USD outlook still bullish?
The broader EUR/USD technical outlook remains cautiously bullish, though near-term momentum has softened amid consolidation.
What levels matter most for EUR/USD right now?
Immediate support is seen at 1.1680, while resistance near 1.1804 caps the upside in the near term.
Disclaimer: This is market news content, not an article, and is provided for informational purposes only.