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EURUSD – Euro Dips Remain Supported Vs US Dollar

Key Points

  • The Euro made a nice upside move and traded towards 1.1840 against the US Dollar.
  • There are two bullish trend lines with supports at 1.1770 and 1.1730 forming on the hourly chart of EURUSD.
  • Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for July 2017 was released by the Markit Economics.
  • The outcome was below the forecast, as the PMI posted a decline from the last reading of 56.8 to 56.6.

EURUSD Technical Analysis

The Euro is in an uptrend and recently traded above the 1.1770 and 1.1800 level against the US Dollar. The EURUSD pair even traded above 1.1840 and the 21 hourly simple moving average to set a new monthly high near 1.1843.

EURUSD Technical Analysis

The pair is currently correcting lower and trading near the 23.6% Fib retracement level of the last wave from the 1.1721 low to 1.1843 high.

On the downside, there are two bullish trend lines with supports at 1.1770 and 1.1730 forming on the hourly chart of EURUSD. Moreover, the 50% Fib retracement level of the last wave from the 1.1721 low to 1.1843 high at 1.1780 is a major support zone.

Euro Zone Manufacturing PMI

Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for July 2017 was released by the Markit Economics. The market was positioned for no change in the PMI from the last reading of 56.8.

The actual result was below the forecast, as the Euro Zone Manufacturing PMI posted a decline from the last reading of 56.8 to 56.6. There was a good growth recorded in nations such as Austria, Germany and Netherlands. The report added that:

The start of the third quarter saw a slight moderation in the recent strong rate of expansion of the eurozone manufacturing sector. This was signalled by the final IHS Markit Eurozone Manufacturing PMI® posting 56.6 in July, down from June’s 74-month high of 57.4 and below the earlier flash estimate of 56.8.

Overall, the EURUSD pair may correct a few pips lower in the near term towards 1.1790-80 which is a buy zone.

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