Thursday, October 3, 2019

EUR/USD

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Fundamental Highlights

The Euro remained to be favored against the Dollar since Tuesday, after ISM Manufacturing PMI showed worst reading in a decade. Today, ISM Non-Manufacturing PMI is expected to show the pace of expansion in the activity slowed in September. The data is forecasted to print at 55 versus 56.4 in August. A big miss in expectations would reinforce the US recession fears, possibly sending the Single currency higher to 1.10. However, if the data beats estimates, the common currency will likely fall back below 1.09. Additionally, ahead of the US data, the pair may take cues from the final EU and German Services PMI along with the EU Retails Sales data.

Technical Analysis

The Single currency bulls pushed price above the 50-day moving average, just below the 1.0960 resistance level. The buyers are looking to extend their gains above the resistance level, possibly targeting 1.10. The sellers on the other hand, need to break below 1.0930 to regain possession and push it towards the yearly low, 1.0885.

Support: 1.0930 / 1.0885
Resistance: 1.0960 / 1.10

Chart (H4)
EURUSD