EUR/USD Under Pressure Ahead of Major Economic Releases
Market Overview
The US dollar edged higher across the board during Tuesday’s European session as traders positioned themselves ahead of a critical series of data releases, including early March figures and broader growth indicators. This renewed dollar strength has put significant pressure on the euro, causing EUR/USD to test key short-term support levels. Market sentiment remains cautious as investors await clarity from upcoming economic prints, which could redefine expectations for both the Federal Reserve’s and the European Central Bank’s monetary policy trajectories.
While broader risk appetite appears relatively stable, the underlying tone is defensive. Currency markets are closely tracking developments in the US jobs sector and European growth prospects, which are expected to play a decisive role in shaping near-term direction for the world’s most traded currency pair.
Technical Analysis
EUR/USD is currently confined within a range on the hourly chart, yet downside momentum is starting to dominate. Sellers have gained control during Tuesday’s trading, exerting pressure on the key support level at 1.13736. Should this floor give way, further declines toward 1.13632, 1.13501, and 1.13355 are projected, paving the way for a broader corrective phase.
Momentum indicators reinforce the bearish outlook. The RSI has fallen below 50, indicating mounting selling strength, while the MACD has slipped into negative territory, suggesting that downward momentum is building. Meanwhile, moving averages remain mixed, highlighting the transitional phase the pair is undergoing.
However, if buyers manage to defend current support levels and push back above resistance at 1.13882, with a further breakout above 1.14117, the bearish scenario would be invalidated, potentially restoring the pair’s previous upward bias.
Key Technical Levels
Resistances: 1.13882, 1.14117
Supports: 1.13632, 1.13501, 1.13355
Fundamental Drivers
Attention now turns to two pivotal data events. Later today, the US Job Openings and Labor Turnover Survey (JOLTS) is set to offer fresh insights into the health of the US employment market, a critical factor for the Federal Reserve’s policy decisions. Markets expect a resilient report; however, any negative surprises could weigh on the dollar.
Moreover, Wednesday brings a wave of crucial Eurozone data, including GDP and inflation figures. Early expectations suggest a slight deceleration in both growth and price pressures. Should these forecasts materialize, they could amplify bearish sentiment around the euro, particularly if US data simultaneously point to continued economic resilience.
Conclusion
EUR/USD risks extending its corrective move lower toward 1.13501 and 1.13355 unless buyers reclaim 1.14117 resistance to invalidate the bearish setup.
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