EUR/USD Holds Steady As US Dollar Recoups, German Growth Forecast Dims

EUR/USD remains stable at 1.0807, with USD gaining ground amid anticipation of FOMC minutes.

German economic growth projection for 2024 slashed to 0.2%, stoking recession fears.

US Fed officials signal cautious approach to rate cuts, awaiting disinflation signs in labor and goods markets.

The EUR/USD pair is virtually unchanged in early trading during the North American session, as the Greenback (USD) trims some weekly losses, as  (DXY) edges back above 104.00. At the time of writing, the major exchanges hands at 1.0807.
 DXY rebounds over 104.00; German outlook and FOMC minutes eyedThe  (EU) economic docket was light, though news from Germany could weigh on the common currency. The German government updated its forecasts for 2024 expecting an economic growth of 0.2%, far less than the 1.3% previously foreseen. A weaker global demand, geopolitical uncertainty, and high inflation dent an economic recovery. In 2023, the economy shrank -0.3%, expected to enter a recession in the first quarter of 2024.Regarding the economic situation, German Economy Minister Robert Habeck added, “Looking ahead, however, we see clear signs that the trend can improve again,” at a news conference presenting the annual economic report.In the US, traders are awaiting the release of the latest Federal Open Market Committee (FOMC) minutes. However, the Richmond Fed President Thomas Barkin said the latest CPI and PPI reports were “less good,” showing the dependence of disinflation on goods. He commented that the labor market is improving while emphasizing the US has a “ways to go” to get a soft landing.US Treasury bond yields had paired their earlier gains as investors await the release of January’s . Since then, Federal Reserve (Fed) officials have expressed they are ready to cut  but would not rush the beginning of the easing cycle. Later, the  will cross the wires.
 EUR/USD Price Analysis: Technical outlookEven though EUR/USD buyers regained the 1.0800 figure, the pair remains vulnerable to selling pressure after failing to reclaim the 200-day moving average (DMA) at 1.0826. If the pair slumps below 1.0800, look for a test of the day’s low of 1.0789 before tumbling toward February’s 20 low at 1.0761. Further downside lies at 1.0700, ahead of the last cycle low of 1.0694. Conversely, if buyers regain the 200-DMA, expect a test of the 1.0900 mark.(Click on image to enlarge)

EUR/USD Technical Levels

OVERVIEW Today last price 1.0813 Today Daily Change 0.0003 Today Daily Change % 0.03 Today daily open 1.081 TRENDS Daily SMA20 1.0795 Daily SMA50 1.0891 Daily SMA100 1.0804 Daily SMA200 1.0827 LEVELS Previous Daily High 1.0839 Previous Daily Low 1.0762 Previous Weekly High 1.0806 Previous Weekly Low 1.0695 Previous Monthly High 1.1046 Previous Monthly Low 1.0795 Daily Fibonacci 38.2% 1.0809 Daily Fibonacci 61.8% 1.0791 Daily Pivot Point S1 1.0769 Daily Pivot Point S2 1.0727 Daily Pivot Point S3 1.0692 Daily Pivot Point R1 1.0846 Daily Pivot Point R2 1.0881 Daily Pivot Point R3 1.0923

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