Key Points
- The Euro recently traded higher but failed to break the 1.0770 resistance area against the US Dollar.
- There was a bullish trend line broken at 1.0750 on the hourly chart of EURUSD, which can be seen as a bearish break.
- Today, the Euro Zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics.
- The result was better than the forecast, as there was a rise to 55.1 from the last 54.9 in Jan 2017 (preliminary).
EURUSD Technical Analysis
The Euro started moving down after trading as high as 1.0773 against the US Dollar, and traded below 1.0750. During the downside move, the EURUSD pair broke a bullish trend line at 1.0750 on the hourly chart to clear a bear leg.
The pair is currently attempting a bounce back, but it is likely to face sellers near the broken trend line near 1.0750-1.0760.
It looks like the pair might move down once again and test the 21 hourly simple moving average at 1.0720 or at least the 23.6% Fib retracement level of the last wave from the 1.0590 low to 1.0773 high.
Euro Zone Manufacturing PMI
Today, the Euro Zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. It was forecasted to decrease from the last reading of 54.9 to 54.8 in Jan 2017.
However, the result better than the forecast, as there was an increase to 55.1 from the last 54.9 in Jan 2017 (preliminary). On the other hand, the Euro Zone Services Purchasing Managers Index (PMI) posted a disappointing reading. It was forecasted to increase to 53.9, but it posted a decline from the last reading of 53.7 to 53.6 in Jan 2017 (preliminary).
Overall, the result was mixed, so there is a chance of EURUSD moving down a few pips towards the 1.0730-1.0720 support area.
