EURUSD above 1.1250 Would Make Case for Larger Rally
Aayush Jindal
Key Highlights
EURUSD climbed higher as the US Dollar weakened a lot recently versus a basket of currencies.
Euro if manages to break and settle above 1.1250, then it could attempt a run towards 1.1500.
US Institute for Supply Management (ISM) Manufacturing Index will be released today, which is expected to come in at 52.0 in April 2015.
Technical AnalysisRecently, a series of key data releases injected considerable volatility and pushed the EURUSD pair higher towards the 1.1250-60 resistance area where sellers struggled in the short term. The shared currency outperformed in overnight trade, with the move mirrored a sharp drop for the US Dollar. The pair is consolidating as this analysis is being written, and looks set for more gains if buyers take control.There is a bullish trend line formed on the hourly chart, which in turn suggests there is limited room of falling and should keep the shared currency downside limited from the current levels. The 38.2% fib retracement level of the last leg from the 1.1070 low to 1.1265 high is also around the highlighted trend line.The above outlined conditions point that EURUSD dips could be considered as a buying opportunity. On the downside, a break below the stated trend line might call for more losses in EURUSD towards the 1.1100 support area.Chinese Non-Manufacturing PMIToday’s Asian session saw a major release in China as the official non-manufacturing PMI i.e. a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications was released by China Federation of Logistics and Purchasing (CFLP). The Chinese Non-Manufacturing PMI came better-than-expected, reported at 53.4, compared to the forecast of 53.0 in April 2015. However, this was below the last reading of 53.7.The result somehow helped the risk sentiment and lifted buyer’s sentiment. Moreover, the Manufacturing Purchasing Managers Index (PMI) came above the expectation and posted a reading of 50.1 in April 2015.US ISM Manufacturing IndexToday, the US Institute for Supply Management (ISM) Manufacturing Index, which helps in gauging the business conditions in the US manufacturing sector in the US will be released today. The forecast is of 0.5 points rise to 52.0 from 51.5 in April 2015. Any major decline in the US ISM Index might put a lot of pressure on the US Dollar buyers.
The above outlined conditions point that EURUSD dips could be considered as a buying opportunity. On the downside, a break below the stated trend line might call for more losses in EURUSD towards the 1.1100 support area.Chinese Non-Manufacturing PMIToday’s Asian session saw a major release in China as the official non-manufacturing PMI i.e. a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications was released by China Federation of Logistics and Purchasing (CFLP). The Chinese Non-Manufacturing PMI came better-than-expected, reported at 53.4, compared to the forecast of 53.0 in April 2015. However, this was below the last reading of 53.7.The result somehow helped the risk sentiment and lifted buyer’s sentiment. Moreover, the Manufacturing Purchasing Managers Index (PMI) came above the expectation and posted a reading of 50.1 in April 2015.US ISM Manufacturing IndexToday, the US Institute for Supply Management (ISM) Manufacturing Index, which helps in gauging the business conditions in the US manufacturing sector in the US will be released today. The forecast is of 0.5 points rise to 52.0 from 51.5 in April 2015. Any major decline in the US ISM Index might put a lot of pressure on the US Dollar buyers.
The above outlined conditions point that EURUSD dips could be considered as a buying opportunity. On the downside, a break below the stated trend line might call for more losses in EURUSD towards the 1.1100 support area.Chinese Non-Manufacturing PMIToday’s Asian session saw a major release in China as the official non-manufacturing PMI i.e. a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications was released by China Federation of Logistics and Purchasing (CFLP). The Chinese Non-Manufacturing PMI came better-than-expected, reported at 53.4, compared to the forecast of 53.0 in April 2015. However, this was below the last reading of 53.7.The result somehow helped the risk sentiment and lifted buyer’s sentiment. Moreover, the Manufacturing Purchasing Managers Index (PMI) came above the expectation and posted a reading of 50.1 in April 2015.US ISM Manufacturing IndexToday, the US Institute for Supply Management (ISM) Manufacturing Index, which helps in gauging the business conditions in the US manufacturing sector in the US will be released today. The forecast is of 0.5 points rise to 52.0 from 51.5 in April 2015. Any major decline in the US ISM Index might put a lot of pressure on the US Dollar buyers.