Euro Slides Down amid Eurozone Manufacturing PMI News

The Euro (EUR) inched lower against the US Dollar (USD) on Monday, decreasing the price of EURUSD to less than 1.1900 following some key economic events. The technical bias has turned bullish because of a higher high in the recent upside rally.

EUR/USD Technical Analysis

As of this writing, the pair is being traded near 1.1864. On the upside, a hurdle may be noted around 1.2100 (a short-term horizontal resistance area as well as psychological number) ahead of 1.2176 (a major horizontal resistance) and then 1.2200 (the psychological number). The technical bias shall remain bullish as long as the 1.0839 support area is intact.

On the downside, a support can be noted around 1.1632 (a key horizontal support) ahead of 1.1629 (the low of the last major downside move) and then 1.1600 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart.

Eurozone Manufacturing PMI

Euro zone factories had their busiest month for over 17 years in November in a broad based acceleration, a purchasing managers’ index showed, despite them hiking prices at the fastest rate in more than six years.

Forward looking indicators pointed to the momentum continuing through to the end of 2017, capping off what is expected to be the best year for euro zone economic growth in a decade.

IHS Markit’s final manufacturing Purchasing Managers’ Index for the bloc climbed to 60.1 last month from October’s 58.5.

That was above a preliminary estimate of 60.0 and the second-highest in the survey’s 20-year history.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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