Key Points
- The Euro gained traction against the US Dollar this week and traded above 1.1050 resistance.
- There are a couple of bullish trend lines formed on the hourly chart of EURUSD, which may act as a support if the pair corrects lower.
- Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics.
- The result was better than the forecast, as there was a rise from the last reading of 53.3 to 53.5 in Oct 2016.
EURUSD Technical Analysis
The Euro made a nice move this week, as it traded above a couple of important resistance levels, including 1.1020 and 1.1050. The EURUSD pair traded as high as 1.1100, and currently looks set for a minor correction.
If the pair corrects lower, there are a couple of bullish trend lines formed on the hourly chart, which may act as a support zone.
Moreover, the 38.2% Fib retracement level of the last wave from the 1.0962 low to 1.1100 high may also act as a support area along with the trend lines. So, one may consider buying as long as the pair above the 1.1000 level.
Euro Zone Manufacturing Purchasing Managers Index (PMI)
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 expecting no change from the last reading of 53.3 in Oct 2016. However, the result was better than the forecast, as the Euro Zone Manufacturing Purchasing Managers Index increased to 53.5. Commenting on the report, the Senior Economist at IHS Markit, Rob Dobson, stated that the “eurozone manufacturing sector made a positive start to the final quarter. Output, new orders and new export business all rose at some of the fastest rates achieved over the past three years, building on the solid increases in quarter three and underpinning the steepest jobs growth since mid-2011”.
Overall, the Euro is in an uptrend, and recent moves suggest that the EURUSD pair may break the 1.1100 resistance soon.
