EUR/USD Recovers Despite Eurozone Manufacturing Contraction

Despite the mixed Eurozone PMIs, the EUR/USD has recovered ground and risen above 1.0950. According to the latest manufacturing activity survey by S&P Global research released on Friday, the Eurozone manufacturing sector unexpectedly contracted further in April. The Eurozone Manufacturing Purchasing Managers Index (PMI) arrived at 45.5, falling short of both the expected 48.0 and the previous 47.3, resulting in the index reaching a 35-month low. On the other hand, the bloc's Services PMI advanced to 56.6 in April, surpassing the forecasted 54.5 and March's 55.0, hitting a 12-month high.

Looking at the technical analysis, the price has shown numerous rebounds on the dynamic trendline, which is still serving as a solid support level. The main trend in the higher timeframe remains bullish, and there is a possibility of continuation of this trend in the long view for the EUR.