- – The Euro started a downside move from the 1.2069-70 swing high against the US Dollar.
- – There is a crucial bearish trend line forming with resistance near 1.1890 on the hourly chart of EUR/USD.
- – Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for August 2017 was released by the Markit Economics.
- – The outcome was in line with the forecast, as there was no change in the PMI from 57.4.
Euro Zone Manufacturing PMI
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for August 2017 was released by the Markit Economics. The market was positioned for no change in the PMI from the last reading of 57.4.
The actual result was expected, as there was no change in the PMI from 57.4. The German Manufacturing Purchasing Managers Index on the other hand posted a decline from the last reading of 59.4 to 59.3. The German PMI report added that:
German manufacturing posted a stronger performance in August following July’s slight loss of momentum, according to the latest PMI® survey data from IHS Markit and BME. Overall operating conditions improved at a pace close to the six-year highs seen in May and June. Output, new orders and new export business all rose more sharply than in July, with the latter expanding at the fastest rate since May 2010.
Overall, the EUR/USD pair is likely to decline in the near term and could even retest the 1.1820 level in the near term.
EUR/USD Technical Analysis
The Euro was in a super uptrend and traded above the 1.2050 level against the US Dollar. The EUR/USD pair made a top near 1.2069-70 and later started correcting lower. It declined below the 1.2000 handle and the 100 hourly simple moving average.
The pair is following a declining path and a crucial bearish trend line forming with resistance near 1.1890 on the hourly chart. It recently traded as low as 1.1821 and started correcting above the 23.6% Fib retracement level of the last decline from the 1.2069 high to 1.1821 low.
However, the upside move was protected by the trend line resistance and the 38.2% Fib retracement level of the last decline from the 1.2069 high to 1.1821 low.
As long as there is no close above the trend line resistance and 1.1900, the pair might continue to decline in the near term. A close above 1.1900 could take EUR/USD towards 1.1950.Tags: EUR/USD, EUR/USD Technical Analysis, Euro, Euro Zone Manufacturing PMI, US Dollar