ECB Speech and PMI Data in Focus: EUR/USD and EURO STOXX 50 Outlook

Market Overview

The euro held steady following the Consumer Confidence report, which met expectations at -14, unchanged from the previous reading of -15. Traders now focus on upcoming PMI releases, with French Flash Manufacturing PMI expected at 42.4 (previous: 41.9) and Services PMI holding steady at 49.3.

German data is projected at 42.7 for manufacturing and 51.1 for services. ECB President Lagarde’s speech later today could provide further policy insights and influence euro movement.

EUR/USD Technical Analysis

The EUR/USD pair is showing strength, trading at $1.04519, up 0.36% as bullish momentum builds. The currency pair is holding above the key pivot level of $1.04046, suggesting buying interest could continue if prices remain above this threshold. Immediate resistance is seen at $1.05201, with further hurdles at $1.05854.

On the downside, support levels are located at $1.03427 and $1.02656, where buyers may step in. The 50-day EMA at $1.03693 reinforces the bullish outlook, while the 200-day EMA at $1.04054 offers dynamic support.

A bullish engulfing pattern indicates the potential for further gains, with traders eyeing a move toward higher resistance levels.

EURO STOXX 50 Fundamental Analysis

The Euro Stoxx 50 index closed higher, marking its seventh consecutive session of gains. Optimism surrounding President Donald Trump’s speech at the World Economic Forum fueled market sentiment, with investors reacting to his call for rate cuts and trade policy adjustments.

However, losses in technology stocks, particularly ASML’s 4.4% decline, capped broader gains.

Looking ahead, investors are focusing on upcoming Eurozone PMI data and the European Central Bank’s rate decision, with expectations of a rate cut and potential forward guidance shaping market outlooks in the near term.

EURO STOXX 50 Technical Analysis

The EURO STOXX 50 is holding steady at 5245.5, up 0.16%, as the index continues its upward trajectory within a rising channel. The key pivot point at 5198 remains a crucial level, with the 50-day EMA at 5193 offering strong support.

A break above immediate resistance at 5300 could pave the way for further gains toward the next key level at 5371. However, if the index dips below 5198, it may face selling pressure, testing support at 5140 and 5069.

The overall bullish sentiment remains intact as long as prices stay above the pivot point, supported by positive market sentiment and technical strength.