Eyes The EURO and US Manufacturing PMIs As Dollar Gains
Aayush Jindal
Key Highlights
Euro after moving lower consolidates losses and awaits for key releases lined up today during the London session.
Euro Area Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics, which is expected to register a rise from the last reading of 51.0 to 51.5.
German Manufacturing Purchasing Managers Index (PMI) will also be released, which is expected to gain from 50.9 to 51.5.
EURUSD has support around 1.1350 where buyers were seen.
Euro Area Manufacturing PMIThere is a major release lined up during the London session today, as the Euro Area Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics. The forecast is slated for an increase from the last reading of 51.0 to 51.5 in February 2015, which if turns out true might help the Euro in the near term. The Euro area services PMI is also expected to gain by 0.3 points from 52.7 to 53.0.Furthermore, the German and France PMI’s are also slated for release around the same time. The market is expecting an improvement in all, which means the forecast is on higher side. If the outcome fails to match the expectation, the Euro might slide moving ahead on the back of a disappointment.Technical AnalysisThe Euro struggled recently against the US dollar and traded lower after testing the 1.4449 high. There is a key thing to note, as the EURUSD pair has formed a double top pattern on the 4hour chart, which is a bearish sign in the short term. However, there is a major bullish trend line formed, which might act as a pivot for the pair moving ahead.The EURUSD pair is currently struggling around the 100 hour moving average, which is a king of worrying sign. A break below the highlighted trend line might ignite losses in the near term. On the upside, initial resistance is around the 1.1390, followed by 1.1420.US Manufacturing PMILater today during the NY session, there is a major release lined up in the US. The US Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics. The forecast is slated for a decline in February from the last reading of 53.9 to 53.6. We need to see how the outcome shapes and affects the US dollar moving ahead.
The EURUSD pair is currently struggling around the 100 hour moving average, which is a king of worrying sign. A break below the highlighted trend line might ignite losses in the near term. On the upside, initial resistance is around the 1.1390, followed by 1.1420.US Manufacturing PMILater today during the NY session, there is a major release lined up in the US. The US Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics. The forecast is slated for a decline in February from the last reading of 53.9 to 53.6. We need to see how the outcome shapes and affects the US dollar moving ahead.
The EURUSD pair is currently struggling around the 100 hour moving average, which is a king of worrying sign. A break below the highlighted trend line might ignite losses in the near term. On the upside, initial resistance is around the 1.1390, followed by 1.1420.US Manufacturing PMILater today during the NY session, there is a major release lined up in the US. The US Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics. The forecast is slated for a decline in February from the last reading of 53.9 to 53.6. We need to see how the outcome shapes and affects the US dollar moving ahead.