Technical Bias: Slightly Bullish
The Euro (EUR) inched lower against the US Dollar (USD) on Friday, dragging the price of EURUSD to less than even 1.1350 following some key economic releases. The technical bias remains slightly bullish in the short term due to a higher high on the four-hour timeframe.
As of this writing, the pair is being traded around 1.1363. A support can be seen near 1.1351, the trendline support ahead of 1.1333, the swing low of last major dip as demonstrated in the following four-hour chart. A break and four-hour closing below the trendline could incite renewed selling pressure, validating a downside move below the 1.1300 handle.
On the upside, the pair is expected to face a hurdle near 1.1371, the intraday high of yesterday ahead of 1.1450, the confluence of psychological number as well as high of last major upside move. The technical bias will remain bullish as long as the 1.1333 support area is intact.
Germany’s Manufacturing PMI
The manufacturing activity in Germany remained 50.9 points in February as compared to the same level in the month before, a report revealed on Friday, down beating the average forecast of different economists which was 51.5 points. Generally speaking, higher manufacturing pmi is considered positive for the economy thus a worse than expected actual outcome spurred selling pressure in the price of EURUSD. Not to mention, Eurozone’s QE announcement is also dragging the shared currency lower in the long run.
Considering the overall technical and fundamental outlook, selling the pair on a breakout appears to be a good strategy in short to medium term.