• The EUR/USD price could resume growth if it stays above the median line.
• The US manufacturing and services data should move the rate.
• A new lower low activates a deeper drop.

The EUR/USD price is trading in the red at 1.0907 at the time of writing. The pair is under mild selling pressure amid the dollar’s recovery.

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The greenback is fighting hard to rebound after last night’s massive sell-off after the FOMC. The Federal Reserve left monetary policy unchanged and the Federal Funds Rate at 5.50%. Still, the greenback depreciated versus all its rivals as the FED confirmed a 75 bps rate cut during the year.

As expected, the FOMC Press Conference brought strong volatility. Today, the fundamentals should drive the price as well.

The Eurozone Flash Services PMI came in at 51.1 versus 50.5 expected, confirming further expansion. Flash Manufacturing PMI dropped from 46.5 to 45.7 points, confirming further contraction.

Meanwhile, the German and French manufacturing and services sectors remain in contraction territory. Later, the US data could be decisive. The Flash Manufacturing PMI may drop from 52.2 to 51.8, signaling a slowdown in expansion. At the same time, the Flash Services PMI is expected to drop to 52.0 points versus 52.3 points in the previous reporting period.

In addition, the Existing Home Sales, CB Leading Index, Current Account, Philly Fed Manufacturing Index, and Unemployment Claims data will also be released.

Technically, the currency pair found support on the lower median line (lml) of the ascending pitchfork, representing dynamic support. Now, it has passed above the median line, a dynamic resistance.

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The pair is struggling to stay above the median line (ml) and the weekly pivot point of 1.0908 after crashing from right below the R1 of 1.0943. Stabilizing above these broken levels may signal further growth in the short term. Only a new lower low could trigger a deeper drop.

https://www.forexcrunch.com/blog/2024/03/21/eur-usd-price-stabilizing-above-1-09-key-level/