- – The Euro after falling close to the 1.0620 support area against the US Dollar started consolidating.
- – The EUR/USD pair later gained bids, and moved above a bearish trend line with resistance at 1.0650 on the hourly chart.
- – In the Euro Zone today, the German Services PMI for March 2017 released by the Markit Economics posted no change from the last reading of 55.6.
German Services PMI
Today in the Euro Zone, the German Services PMI for March 2017 was released by the Markit Economics. The market was positioned for no change from the last reading of 55.6.
However, the outcome in line the forecast, as the German Services PMI stood at 56.2, which is well above the 50 level. There were two positives to take. First, the Business activity was at the fastest rate in 15 months. The second was employment growth, which was the strongest in over six years. The report added that in “comparison, the index average since the survey began in June 1997 was at 53.1. Activity has risen continuously since June 2013, the second-longest sequence of growth in the survey history“.
Overall, the result was positive and may help the Euro to gain traction. And, EURUSD could trade above 1.0700 in the near term.
EUR/USD Technical Analysis
The Euro was under pressure, and traded below 1.0720 and 1.0680 support levels against the US Dollar this week. Later, the EUR/USD pair traded in a range above the 1.0620 support, and finally started moving higher.
During the upside move, the pair broke a bearish trend line with resistance at 1.0650 on the hourly chart. It has opened the doors for more gain, but the pair is currently struggling near 1.0680. It is a major resistance and coincides with the 23.6% Fib retracement level of the last decline from the 1.0871 high to 1.0636 low.
Moreover, the 100 hourly simple moving average is also around 1.0690. So, a break above 1.0680 and 1.0690 would call for a push above 1.0700. The pair may even trade towards the 38.2% Fib retracement level of the last decline from the 1.0871 high to 1.0636 low at 1.0726.Tags: EUR/USD Technical Analysis, Euro, German Services PMI, US Dollar