Key Points
- The Euro remained in the bullish trend against the US Dollar with support on the downside at 1.0885.
- The EURUSD pair recently broke a bearish trend line with resistance at 1.0910 on the hourly chart.
- Recently in the US, the Institute for Supply Management (ISM) Manufacturing PMI for April 2017 was released.
- The outcome was below the forecast, as there was a decline in the index from the last reading of 57.2 to 54.8.
EURUSD Technical Analysis
The Euro remained elevated against the US Dollar and moved above 1.0820 resistance against the US Dollar. After trading as high as 1.0948, the EURUSD pair started a correction and moved below the 50% Fib retracement level of the last wave from the 1.0858 low to 1.0948.
The downside move found support near 1.0885, 21 hourly simple moving average and the 61.8% Fib retracement level of the last wave from the 1.0858 low to 1.0948.
The pair is currently moving back higher, and already broke a bearish trend line with resistance at 1.0910 on the hourly chart. So, it may soon move higher and trade above 1.0920 once again.
US ISM Manufacturing PMI
Recently in the US, the Institute for Supply Management (ISM) Manufacturing PMI for April 2017 was released. The forecast was lined up for the index to decline from the last reading of 57.2 to 56.5.
The result was below the forecast, as there was a decline in the index from the last reading of 57.2 to 54.8. The report stated that the “New Orders Index registered 57.5 percent, a decrease of 7 percentage points from the March reading of 64.5 percent. The Production Index registered 58.6 percent, 1 percentage point higher than the March reading of 57.6 percent”.
Overall, the EURUSD pair may resume its uptrend and very likely to trade back towards the 1.0948 level in the near term.
