EUR/USD Forecast – Euro Downsides Limited Below 1.0760 Vs USD
- – The Euro made a nice move towards 1.0800 against the US Dollar recently.
- – The EUR/USD pair during the upside broke a resistance near 1.0720 and a bearish trend line on the 4-hours chart.
- – Today, the Euro Zone Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted a rise from 55.1 to 55.2 in Jan 2017.
Euro Zone Manufacturing PMI
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) figure for Jan 2017 was released by the Markit Economics. The market was aligned for no change from the last reading of 55.1 this month.
However, the result was better, as there was a rise from the last reading of 55.1 to 55.2 in Jan 2017. The German Manufacturing Purchasing Managers Index (PMI) on the other hand, posted a decline from 56.5 to 56.4 in Jan 2017. The report on the Euro Zone MPMI mentioned that the “start of 2017 saw a marked improvement in business conditions at eurozone manufacturers. Output growth held steady at December’s 32-month record, underpinned by the strongest inflows of new business and the fastest job creation since the first half of 2011”.
Overall, the results were stable, which means any corrections from the current levels in EUR/USD towards 1.0760 may find support on the downside.
EUR/USD Technical Analysis
The Euro moved higher recently against the US Dollar and traded as high as 1.0812 where it found sellers. During the upside move, there was a break above a couple of major resistances like 1.0720 and 1.0750. There was also a break above a bearish trend line at 1.0750 on the 4-hours chart.
The pair is currently correcting lower, and about to test the 23.6% Fib retracement level of the last wave from the 1.0618 low to 1.0812 high. The 1.0766 level is a major support area since it acted as a resistance earlier, and might now stop the downside move below 1.0750.
If at all, the downside move is extended, there is a chance of a move towards the 50% Fib retracement level of the last wave from the 1.0618 low to 1.0812 high at 1.0715. Overall, the pair remains supported on the downside near levels like 1.0765, 1.0750 and 1.0720.
