- – The Euro gained bullish momentum this week and was able to move above the 1.1820 resistance against the US Dollar.
- – There was a break above a key bearish trend line at 1.1780 on the hourly chart of EUR/USD.
- – Recently in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for Nov 2017 (Prelim) was released by the Markit Economics.
- – The outcome was above the forecast of 58.3 as there was a rise in the PMI from 58.5 to 60.0.
Euro Zone Manufacturing PMI
Recently in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for Nov 2017 (Prelim) was released by the Markit Economics. The market was positioned for a decline in the PMI from 58.5 to 58.3 in Nov 2017.
The actual result was above the forecast of 58.3 as there was a rise in the PMI from 58.5 to 60.0. Moreover, the Euro Zone Composite Output Index was up from the last reading of 56.0 to 57.5 in Nov 2017. The report added:
The eurozone economy is showing signs of picking up momentum in the fourth quarter, with multi-year highs seen for all main indicators of output, demand, employment and inflation in November.
The EUR/USD pair remains in a nice uptrend and it might continue to move higher towards 1.1900 in the near term.
EUR/USD Technical Analysis
The Euro started a decent uptrend from the 1.1710 swing low against the US Dollar. The EUR/USD pair made a nice upside move and traded above the 1.1780 and 1.1820 resistance levels, and is currently placed well above 1.1840 and the 100 hourly simple moving average.
The pair was able to break a key bearish trend line at 1.1780 on the hourly chart, which has opened the doors for more gains. The pair traded as high as 1.1855 and is currently trading in a range. An ascending channel is forming with current support at 1.1850.
The pair is likely to accelerate higher and it will most likely test the 1.1900 level. On the downside, the channel support is also near the 23.6% Fib retracement level of the last wave from the 1.1735 low to 1.1865 high.
As long as the pair is above the 1.1820 support, it remains in an uptrend with next targets as 1.1900 and 1.1910.
Also published on Medium.Tags: EUR/USD, EUR/USD Technical Analysis, Euro, US Dollar