EUR/USD Holds Gains Near 1.0850 as Risk Sentiment Improves – Mixed German PMI Data in Focus

Monday, March 25, 2025 – DailyForex.pk News Desk

The EUR/USD currency pair is holding steady near the 1.0850 mark in the European session on Monday, breaking its three-day losing streak. A shift in global risk sentiment, coupled with reduced concerns over U.S. reciprocal tariffs, is weighing on the U.S. Dollar (USD) and supporting the Euro’s strength—even amid mixed economic data from Germany.

🔍 Key Technical Levels – EUR/USD

Immediate Resistance: 1.0880 (50-period SMA), followed by 1.0900 (psychological round number).
Further Upside Target: 1.0950 (static resistance).
Support Zones: 1.0800–1.0790 (static support, 100-period SMA), 1.0750 (20-day SMA), and 1.0730 (200-day SMA).

The Relative Strength Index (RSI) on the 4-hour chart is recovering toward 50, signaling that bearish momentum is easing in the short term.

📊 Market Sentiment & Fundamentals

Risk-on sentiment is lifting global equities and weighing on the safe-haven USD. Reports from the Wall Street Journal and Bloomberg suggest that U.S. President Donald Trump’s upcoming reciprocal tariffs, set to begin on April 2, will be more targeted than originally expected—potentially easing fears of a full-blown trade war.

This change in tone has helped EUR/USD remain resilient despite mixed readings from Germany’s March Flash PMIs. While services sector growth remains robust, manufacturing output still lags, reflecting ongoing challenges in the Eurozone’s largest economy.

🔮 What to Watch Today

Traders should keep a close eye on:

German, Eurozone, and U.S. Flash PMI Data – A reading above 50 indicates economic expansion.
U.S. Manufacturing and Services PMI – A below-50 reading could trigger renewed USD weakness.
Ongoing developments in U.S. tariff policy and Fed commentary.

📌 Conclusion

The EUR/USD pair remains in a short-term consolidation phase, supported by improved investor sentiment and a pullback in USD strength. If the pair manages a decisive break above 1.0900, bulls could aim for the 1.0950–1.1000 range. However, downside risks remain if weak Eurozone data or a stronger USD reemerge.

Stay updated with real-time forex news, technical analysis, and daily exchange rates at www.dailyforex.pk – your trusted source for Pakistan’s most accurate forex updates.

Hamza Shah