Key Points
- The Euro recently traded as high as 1.1356 versus the US Dollar where it found sellers.
- The EURUSD pair is currently moving down and also broke a bullish trend line formed on the hourly chart.
- The Euro Zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics earlier today.
- The market was not expecting any major change in the PMI, but there was a decline from 52 to 51.8 in August 2016 (preliminary).
EURUSD Technical Analysis
The Euro gained heavily during the past 24 hours and traded as high as 1.1356 versus the US Dollar. However, it later found resistance and moved down. During the downside move, the EURUSD pair broke a bullish trend line formed on the hourly chart.
The pair also broke the 23.6% Fib retracement level of the last wave from the 1.1271 low to 1.1356 high.
So, there are chances of EURUSD heading further lower if sellers remain in control.
Euro Zone Manufacturing Purchasing Managers Index
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector was released by the Markit Economics.
The market was not expecting any major change from the last reading of 52 in August 2016 (preliminary). However, there was a decline to 51.8. The report added that “The euro area economy continued to expand at a steady pace in August. At 53.3, up from 53.2 in July, the flash estimate of the Markit Eurozone PMI® inched up to a seven-month high. With the index only slightly above the average seen throughout the year to date, growth in the third quarter is likely to be similar to that seen in the first half of the year“.
Overall, the Euro remains under a bearish pressure and may continue to move down in the near term.
