FxWirePro- EURUSD Trade Idea

EUR/USD showed a pullback after dismal US economic data. It hit an intraday high of 1.09108 and currently trading around 1.09085.

In February 2025, retail sales in the United States recorded a weak increase of 0.2%. This was lower than the predicted increase of 0.6%. The earlier data in January were revised to show a fall of 1.2%, which is greater than the initially reported decline of 0.9%. 

The Empire State Manufacturing Index fell sharply in March 2025 to -20.0 from February's reading of 5.7, falling by nearly 26 points and its biggest since May 2023. This was even worse than the median forecast of -1.50 and points to a sharp weakening in New York State manufacturing. Key indicators such as new orders and shipments fell, as input prices also picked up pace at the fastest rate in more than two years. Moreover, also the business optimism about prospects has decreased significantly, generating concerns regarding an economic deterioration environment in the region.

Technical Analysis of EUR/USD

The pair is holding above short and below long term moving average in the 4-hour chart. Near-term resistance is seen at 1.0950; a break above this may push the pair to targets of  1.1000. Major bullish momentum is likely only if prices are able to break above 1.1000 where levels of  1.1070/1.1150. On the downside, support is seen at 1.0850 any violation below will drag the pair to 1.0800/1.0750/1.0700/1.0660/1.0600/1.0500/ 1.0460.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bullish

Average Directional Movement Index (ADX) - Bullish

 It is good to buy on dips around 1.0870 with a stop-loss at 1.0820 for a  target price of 1.100.