- – The Euro recently started moving higher from the 1.1125 support area against the US Dollar.
- – There was a break above a bearish trend line at 1.1165 on the hourly chart of EUR/USD, which has cleared the path for more gains.
- – Today in the Euro Zone, the German Manufacturing Purchasing Managers Index (PMI) for June 2017 (Prelim) released by the Markit economics posted a decline from 59.5 to 59.0.
German Manufacturing PMI
Recently in the Euro Zone, the German Manufacturing Purchasing Managers Index (PMI) for June 2017 (Prelim) released by the Markit economics. The market was positioned for a minor decline from the last reading of 59.5 to 59.0.
However, the actual result was a bit better, as the PMI is expected to decline from 59.5 to 59.3 in June 2017. On the other hand, the German Services PMI (Prelim) for June is expected to decline from 55.4 to 53.7. In a report, the Markit stated that “the rate of growth slowed to the weakest since February, with both manufacturing output and services business activity increasing at slightly softer rates than in May. The latest survey data also signalled the weakest price pressures since November 2016”.
Overall, the EUR/USD pair is likely to gain traction and move above the 1.1180 resistance in the near term.
EUR/USD Technical Analysis
The Euro was under a minor bearish pressure lately as it broke the 1.1140 support against the US Dollar. The EUR/USD pair traded as low as 1.1122 where buyers appeared and protected further declines in the near term.
The pair started correcting higher, and moved above the 23.6% Fib retracement level of the last decline from the 1.1212 high to 1.1122 low. Also, the Euro buyers were able to push the pair above a bearish trend line at 1.1165 and the 100 simple moving average on the hourly chart.
The pair is currently attempting a break above the 61.8% Fib retracement level of the last decline from the 1.1212 high to 1.1122 low. Once there is a proper close above 1.1180, there are chances of further gains above 1.1200 in the near term.
On the downside, the 100 hourly SMA and the 1.1150 level are likely to act as a support zone if the pair corrects lower going forward.Tags: EUR/USD Technical Analysis, Euro, US Dollar