The bears aim to test the 1.1000 mark

EUR/USD Current Price: 1.1040

• Warm European data undermined demand for the euro during London trading hours.
• US service output under spotlight at start of US session.
• EUR/USD short-term bear case loses momentum as buyers defend 1.1000.

The EUR/USD pair remains on the bearish side on Thursday, after taking a step closer to the 1.1000 threshold. The pair hit an intraday low of 1.1024 during European trading hours, with attempts to advance against resistance ahead of the 1.1050 threshold.

The European data has taken its toll on the euro. The producer price index (PPI) in the euro area rose by 0.6% monthly in August, according to the first estimates of Eurostat, the statistics office of the European Union. The figure was higher than the anticipated 0.3%. The annual PPI registered -2.3%, also beating expectations. Despite not being alarming, the figures indicated an increase in price pressures at the end of the second quarter.

At the same time, Hamburg Commercial Bank (HCOB) released final September Purchasing Managers’ Indices (PMI) estimates, with modest upward revisions to services production, lifting the final composite PMI. The EU services PMI was confirmed at 51.4, while the composite PMI came in at 49.6. However, “the euro area economy suffered a further setback at the end of the third quarter as total business activity fell for the first time since February,” according to the official report.

Across the pond, the United States (US) released the Challenger Job Cuts report, which showed that US employers announced 72,821 job cuts in September, down 4% from 75,891 cuts announced a month earlier. In addition, initial jobless claims for the week ended Sept. 27 rose by 225,000, worse than the 220,000 expected.

After Wall Street opens, S&P Global will release September’s US Services PMI and Composite PMI. Later, the focus will shift to the ISM Services PMI for the same month. By the end of the day, several Federal Reserve (Fed) officials will be hitting the wire.

EUR/USD short-term technical outlook

Technically, the daily chart for the EUR/USD pair is neutral to bearish. The Momentum indicator is just below the 100 line with no clear directional strength. At the same time, the 20-day simple moving average (SMA) is positioned above both the 100-day and 200-day SMAs, with the price hovering in between. However, the recent movements of the 20 SMA show a slight decline, which may indicate a short-term decline in the bullish momentum. EUR/USD is trading at 1.1029, with immediate resistance at 1.1101 closely aligned with the 20-day SMA, which could act as a barrier to further upside. On the downside, an uptrend line level at 1.0970 serves as a key support level, providing a low for the currency pair.

On the 4-hour chart, the Momentum indicator is currently at 99, signaling bearish potential. At the same time, the 20-period simple moving average (SMA) is positioned at 1.1078, which remains below both 100-period SMAs. This alignment underscores the dominance of sellers in the current market structure, reinforcing the bearish outlook. Despite the prevailing bearish indicators, a slight increase in Momentum indicates a possible weakening of the downward momentum. The steady position of 20 SMA below the long-term averages signifies sustained selling pressure, but the potential reversal of Momentum could pave the way for a change in market sentiment.

Support levels: 1.1020 1.0980 1.0935

Resistance levels: 1.1050 1.1100 1.1140

(The technical analysis section of this story was created in part using an artificial intelligence tool and reviewed by an editor.)