The eurozone and US PMIs may trigger a correction in the EURUSD rate towards 1.0350. More details in our analysis for 3 February 2025.
EURUSD forecast: key trading points
- The eurozone’s manufacturing PMI for January: previously at 45.1, projected at 46.1
- The eurozone’s CPI for January: previously at 2.4%, projected at 2.4%
- The US manufacturing PMI for January: previously at 49.4, projected at 50.1
- EURUSD forecast for 3 February 2025: 1.0350 and 1.0175
Fundamental analysis
The eurozone’s manufacturing PMI measures the activity of purchasing managers in the industrial sector. It reflects the state of the industrial sector and the dynamics of manufacturing processes in the country. Traders closely monitor changes in this index, as purchasing managers are the first to receive information about the performance of their companies, which makes PMI an important indicator for assessing the overall economic situation. Readings above 50.0 indicate an increase in production, while values below 50.0 point to a decline.
Fundamental analysis for 3 February 2025 takes into account that the eurozone’s manufacturing PMI could rise to 46.1. While this is a positive factor for the EURUSD rate, it is necessary to keep in mind that the reading is below 50.0.
The eurozone’s CPI reflects changes in consumer prices of goods and services, helping assess changes in buying trends and economic stagnation. A higher-than-forecast reading typically has a positive effect on the national currency.
The forecast for 3 February 2025 suggests that the index may remain at the previous reading of 2.4% in line with the forecast 2.4%. Fundamental analysis for 3 February 2025 shows that the CPI may remain unchanged from the previous period, adding to positive factors for the euro.
The US manufacturing PMI is projected to reach 50.1 in January, which will be encouraging for the USD.
EURUSD technical analysis
Having fallen with a price gap below the Bollinger band, the EURUSD price has formed a Hammer reversal pattern on the H4 chart. At this stage, it continues its upward trajectory following the signal received. The price could undergo a correction followed by a pullback to the nearest resistance level at 1.0350 as it remains within the descending channel. A rebound from this level will open the door for the development of the downtrend.
However, the price could plunge to the 1.0175 support level and gain its downward momentum in the short run.
Summary
Coupled with the EURUSD technical analysis, the eurozone’s positive news suggests a correction towards 1.0350.
Source: Roboforex
