The Euro made a nice upside move this past week and traded above 1.1640 against the US Dollar.
There are two important bullish trend lines with support at 1.1585 and 1.1530 forming on the 4-hours chart.
Today in the Euro Zone, the preliminary German Manufacturing Purchasing Managers Index (PMI) reading for July 2017 was released, which declined from 59.6 to 58.3.
Later today, the US preliminary Manufacturing PMP reading for July 2017 will be released, which is forecasted to increase from 52.0 to 52.1.
EURUSD Technical Analysis
The Euro maintained its bullish bias during the past few days and traded towards 1.1700 against the US Dollar. The EUR/USD pair remains supported on dips near 1.1620 and 1.1580.Looking at the 4-hours chart, there are two important bullish trend lines forming with support at 1.1585 and 1.1530. An initial support is around the 23.6% Fib retracement level of the last wave from the 1.1479 low to 1.1684 high.However, the most significant support is around the 50% Fib retracement level of the last wave from the 1.1479 low to 1.1684 high at 1.1580. The first trend line support is also around the 1.1580 support.On the upside, the recent high of 1.1684 high is a short-term resistance. A break above it could take the pair above 1.1700 in the near term.
Germany’s Manufacturing PMI
Today in the Euro Zone, the preliminary German Manufacturing Purchasing Managers Index (PMI) reading for July 2017 was released. The market was positioned for a decline from the last reading of 59.6 to 59.2.However, the result was on the lower side, as the PMI is expected to decline from 59.6 to 58.3 in July 2017. With this Germany’s private sector output growth was down for the 2nd time but remained strong overall.Commenting on the flash PMI data, Senior Economist at IHS Markit, Trevor Balchin, stated:
The flash PMI signalled a further easing in the pace of German economic expansion entering the second half of 2017. Output and new orders both increased at the slowest rates since January, with new business in the service sector rising at the weakest pace in ten months.
To sum up, there can be corrections in EUR/USD towards 1.1600 or 1.1580, but it remains supported on the downside for further gains.
Looking at the 4-hours chart, there are two important bullish trend lines forming with support at 1.1585 and 1.1530. An initial support is around the 23.6% Fib retracement level of the last wave from the 1.1479 low to 1.1684 high.However, the most significant support is around the 50% Fib retracement level of the last wave from the 1.1479 low to 1.1684 high at 1.1580. The first trend line support is also around the 1.1580 support.On the upside, the recent high of 1.1684 high is a short-term resistance. A break above it could take the pair above 1.1700 in the near term.
However, the result was on the lower side, as the PMI is expected to decline from 59.6 to 58.3 in July 2017. With this Germany’s private sector output growth was down for the 2nd time but remained strong overall.Commenting on the flash PMI data, Senior Economist at IHS Markit, Trevor Balchin, stated: