EURUSD – Can Euro Retain Bullish Trend Vs US Dollar?
Aayush Jindal
Key Highlights
The Euro remained above the 1.0800 support against the US Dollar this past, and traded with a positive bias.
There are many supports on the downside for the EURUSD pair like 1.0850 and 1.0820.
Today in China, the Manufacturing Purchasing Managers Index (PMI) for April 2017 released by the China Federation of Logistics and Purchasing (CFLP) posted a decline from 51.8 to 51.2.
Today in the US, the Institute for Supply Management (ISM) Manufacturing Index for April 2017 will be released, which is forecasted to decline from 57.2 to 56.5.
EURUSD Technical Analysis
The Euro after opening with a gap up this past week against the US Dollar remained above 1.0800. The EURUSD pair is still above the 1.0820 support and may trade higher in the near term.The pair is currently consolidating in a range with support at 1.0850 and resistance near 1.0940. We may see a few more moves inside the range before the pair makes an attempt to break either 1.0850 or 1.0940.The H4 RSI is above the 50 level, and signaling a positive bias for EURUSD at the moment.
Chinese Manufacturing PMI
Recently in China, the Manufacturing Purchasing Managers Index (PMI) for April 2017 was released by the China Federation of Logistics and Purchasing (CFLP). The market was aligned for the PMI to decline from 51.8 to 51.6.The result was on the lower side, as there was a decline in the Chinese Manufacturing Purchasing Managers Index from 51.8 to 51.2 in April 2017. The report indicated the following points:
Output expands at a faster pace.
Both new orders and new export orders indices go up.
Backlogs of orders index edges up in March.
Stocks of finished goods index stays high.
Economic Releases to Watch Today
Swiss Real Retail Sales March 2017 (YoY) – Forecast +0.5%, versus +0.6% previous.
US Personal Income for March 2017 (MoM) - Forecast +0.3% versus +0.4% previous.
US Personal Spending for March 2017 (MoM) - Forecast +0.2% versus +0.1% previous.
US Core Personal Consumption Expenditure for March 2017 (MoM) - Forecast -0.1% versus +0.2% previous.
US ISM Manufacturing Index for April 2017 – Forecast 56.5, versus 57.2 previous.
US Markit Manufacturing PMI for March 2017 – Forecast 52.5, versus 52.8 previous.
The pair is currently consolidating in a range with support at 1.0850 and resistance near 1.0940. We may see a few more moves inside the range before the pair makes an attempt to break either 1.0850 or 1.0940.The H4 RSI is above the 50 level, and signaling a positive bias for EURUSD at the moment.
The result was on the lower side, as there was a decline in the Chinese Manufacturing Purchasing Managers Index from 51.8 to 51.2 in April 2017. The report indicated the following points: