- Euro continued to weaken against the US Dollar, as the latter one gained traction recently.
- The EURUSD pair is currently making an attempt to recover the ground, but facing a lot of resistance on the way up.
- German Manufacturing Purchasing Managers Index (PMI) released by the Markit economics posted an increase from 52.1 to 52.6 in November 2015.
- Euro Zone Manufacturing Purchasing Managers Index (PMI) also increased from 52.3 to 52.8.
The EURUSD pair recovered well after trading near 1.0600, but it remains under the bearish pressure. There are many resistances on the way up for the pair, including a bearish trend line on the hourly chart that may act as a major hurdle for buyers moving ahead.
Moreover, the 38.2% Fib retracement level of the last drop from the 1.0763 high to 1.0601 low is also around the highlighted trend line and resistance area. In short, there is a major resistance around 1.0655-65.
On the downside, the last low of 1.0600 holds the key for more losses.
Euro Zone Manufacturing PMI
The Euro Zone Manufacturing Purchasing Managers Index (PMI) that evaluates business conditions in the manufacturing sector was released by the Markit Economics today. The market was not expecting any increase in the PMI from 52.3 in November 2015. However, the outcome was positive, as there was a rise to 52.8. Similarly, the preliminary Euro Zone Services PMI rose from 54.1 to 54.6 in November 2015.
The PMI reports in Germany were also encouraging, as the German Manufacturing Purchasing Managers Index (PMI) rose from 52.1 to 52.6 in November 2015.
Overall, the economic releases in the Euro Zone were positive, which may take the pair higher to some extent. However, we cannot deny that there is a major resistance around 1.0660-65.