Eurusd experiences slight drop as US and Eurozone economic indicators disappoint

EURUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.12%	-14 Pips
Week to-date	-0.12%	-14 Pips
August	1.36%	155 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, there was a notable downturn in the manufacturing sector, as evidenced by the latest data on new orders for manufactured goods. According to the Census Bureau, these orders fell by 4.8% in June 2025, a significant drop from the revised increase of 8.3% in May. This decrease suggests a slowing demand for manufactured goods, which can be indicative of broader economic challenges or a cooling period following strong activity in the previous month. Such a contraction might lead to cautiousness among manufacturers and investors, as it raises concerns about the strength and sustainability of economic growth in the near term.

In the Euro Area, the August 2025 Sentix Economic Index for the Eurozone reported a decline, falling to -3.7 points from 4.5 points in July. This reduction in the economic sentiment index underscores growing pessimism among investors and analysts concerning the region’s economic outlook. As the index reflects confidence in the economic situation, a negative reading suggests that economic activities might face headwinds, potentially owing to various geopolitical, financial, or other macroeconomic factors that are impacting confidence levels negatively.

The recent economic data from both the United States and the Euro Area impacted the EURUSD currency pair, which dropped by 0.12% to 1.15700. The downside move reflects a market reaction to the underwhelming manufacturing data from the U.S., possibly suggesting that the dollar may face challenges if economic momentum weakens further. On the other hand, the weaker Sentix Economic Index for the Eurozone indicates a relative decline in optimism for the Euro Area, which might weigh on the euro. Overall, with both regions experiencing negative economic indicators, the EURUSD pair remains in consolidation as traders await more clarity and direction from future data releases. With no major events scheduled for the day, the currency pair is likely to trade within a narrow range, reacting primarily to any unforeseen developments.

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What can we expect from EURUSD today?

EURUSD on Monday dropped -0.12% to 1.15700. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for EURUSD looks mixed as the pair is likely to consolidate above 1.1546 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.15960 or trades above daily pivot 1.1571. Break above could target R1 at 1.1595. While to the downside, we are looking at 1.1546 (S1) and daily low of 1.15470 as support levels. EURUSD need to break on either side to indicate a short-term bias. A close below 1.15470 would indicate selling pressure.

For the week to-date, take note that EURUSD is mixed as compared to the prior week.

Key levels to watch out: