EURUSD Technical Outlook (Daily)
EURUSD: The week started with thin trading volumes, and with the Buck paring the upward momentum triggered by FOMC Mins.
The single currency traded modestly lower, briefly falling below the 1.1200 mark Vs the USD, and holding near the mark into the close.
Data coming from Europe was mixed, as the preliminary Markit PMI’s for the EU missed expectations. The manufacturing sector PMI shrank from 51.7 to 51.5, while the services sector grew by 53.1, matching April number, but below 53.3 as expected.
In the US the seasonally adjusted Markit Flash US Manufacturing Purchasing Managers’ Index (PMI) came in at 50.5, down from 50.8 in April.
The EURUSD maintains a Bearish bias, despite the lack of follow through, and is still contained in near term by selling interest in the 1.1240/50 zone, and it is trading below 1.1280, the resistance to overcome to confirm additional gains in the near term.
The 4 hours shows that the pair continues consolidating near the 2 month low set last Friday at 1.1179, the price is hanging around a very Bearish 20-Day SMA, the Momentum indicator aims higher around its mid-line, the RSI bounces from oversold readings, indicating limited selling interest around the pair.
A clear break below 1.1160, the Key support is required to confirm a Southward continuation for Tuesday.
Support marks: 1.1195 1.1160 1.1120
Resistance marks: 1.1245 1.1280 1.1330
Latest posts by Paul Ebeling (see all)
- Commentary: Paul Ebeling on Wall Street - October 24, 2016
- Key Stock, Crude, Gold and Silver Markets Briefing - October 24, 2016
- Chicago Agriculture Commodities Finished Mixed Friday - October 24, 2016