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Market Analysis

Home » Technical Analysis » Daily » EURAUD – 1.5570-80 Remains Hurdle For The Euro

EURAUD – 1.5570-80 Remains Hurdle For The Euro

Posted by FXTimes in Daily - May 23rd, 2016 11:04 am GMT

euro-currency-inflation-falling

Key Points

  • The Euro traded with a positive tone recently vs the Aussie Dollar, but faced a lot of offers near 1.5570-80.
  • There is a bearish trend line formed on the hourly chart of the EURAUD pair, which is acting as a resistance for the Euro buyers.
  • Euro Zone Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted a decline from 51.7 to 51.5 in May 2016 (preliminary).
  • Euro Zone Services Purchasing Managers Index (PMI) remained unchanged at 53.1 in May 2016 (preliminary).

Technical Analysis

The Euro recently corrected lower vs the Aussie dollar and tested the 1.5466 level, where it found buyers. The EURAUD pair is currently moving higher, but it may face sellers near a bearish trend line formed on the hourly chart.

EURAUD

The pair is now above the 100 and 200 hourly simple moving average, which is a bullish sign in the near term.

However, the highlighted trend line and resistance area holds the key for more gains in EURAUD moving ahead.

Euro Zone Manufacturing PMI

Earlier today, the Euro Zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. It captures business conditions in the manufacturing sectors and was expected to increase from 51.7 to 51.9 in May 2016 (preliminary). However, the outcome was negative, as the PMI declined to 51.5.

Moreover, the Euro Zone Services Purchasing Managers Index (PMI) was also released. The forecast was slated for a rise, but it remained unchanged at 53.1 in May 2016 (preliminary). The report stated that
“Markit Flash Eurozone PMI – which is based on approximately 85-90% of normal final monthly replies–slipped to a 16-month low of 52.9 in May, down from 53.0 in April. With the PMI having averaged 53.2 in the opening quarter, the latest two months’ weak data suggest that economic growth has likely slowed in the second quarter”.

Overall, the reports failed to meet the forecast, but were not that bad, which means the Euro may trade a few pips higher moving ahead.

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