Key Points
- The Euro recently declined towards the 1.1830 level against the US Dollar before finding support.
- There is an ascending channel pattern with support at 1.1895 forming on the hourly chart of EURUSD.
- Recently in the US, the Services Purchasing Managers Index (PMI) for August 2017 was released by Markit Economics.
- The outcome was below the forecast of 56.8, as there was a decline from the last reading of 56.9 to 56.0.
EURUSD Technical Analysis
The Euro recently suffered losses and traded lower towards the 1.1830 level against the US Dollar. The EURUSD pair after trading as low as 1.1823 started a recovery and managed to move above the 1.1850 level and the 21 hourly simple moving average.
The pair is now following an ascending channel pattern with support at 1.1895 forming on the hourly chart. As long as the pair above the 1.1880 support and the 21 hourly simple moving average, it might continue to move higher.
On the upside, a break above the channel resistance at 1.1950 is needed for further gains in the near. The next hurdle could be around the 1.1980 level.
US Services PMI
Recently in the US, the Services Purchasing Managers Index (PMI) for August 2017 was released by Markit Economics. The market was positioned for a minor decline from the last reading of 56.9 to 56.8.
The actual result was below the forecast of 56.8, as there was a decline from the last reading of 56.9 to 56.0. Moreover, the ISM Non-Manufacturing Index for August 2017 was released by the Institute for Supply Management (ISM). The result was once again on the lower side, but better than the last as there was a rise from 53.9 to 55.3.
Overall, the EURUSD pair might continue to slowly move higher as long as the 1.1880 support is intact.
