Stronger Euro supports the trend.
By: Ahura Chalki
Market analyst – IFC Markets
After up-beat European data, EURUSD back over 1.1900. Despite French weaker Manufacturing and Service PMI, both indexes rose in Germany and EZ. Preliminary data confirms that German’s Manufacturing and Service PMI, respectively, rose to 64.9 and 58.1, and in EZ, indexed respectively rose to 63.1 and 58.0; composite PMI came over 59.2.
On the other hand, in the UK, same as French, numbers were less than market expectation for composite and service PMI, both at 61.7, but manufacturing activities better than expectations printed 64.2.
Earlier, USD was under pressure, as FED speakers and Mr. Powell’s testimony repeated the supportive tone.
And while we expect more recovery and better data for June, a more supportive tone from FOMC members will be bullish for pairing, while negative data in Europe and the Hawkish tone of FED speakers will be harmful to the trend.
EURUSD Technical overview
From March 31 until May 25, the long-term uptrend helped the Euro to gain to 1.2270 from 1.1710. At the correction, the pairing lowered under 61.8% Fibo, which is almost sitting at 23.6% of the latest downtrend Fibo levels. If pairing can continue its way over 1.2060, 50% of the current trend’s Fibonacci level and the 38.2% of its previous trend in the Daily chart, it can confirm the uptrend. Any pullback from 1.2060 or failure to achieve it supports the downtrend.