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FxWirePro: EURUSD trade lower on weak PMI data, good to sell on rallies

Major resistance- 1.1100

 

EURUSD trade slightly weak after the release of PMI data of the Eurozone. The flash manufacturing PMI came above expectations for Germany, France and services PMI for Germany came at 51.3 vs forecast of 52.0, while that of France at 52.9 compared to estimate 53. It hits an intraday low of 1.10470 and is currently trading around 1.10574.

 

The German bund yield has halted its 1-1/2 month uptrend and shown a minor decline. It has jumped more than 70% from a low of -0.72%. The spread between US and German yield has narrowed to 210 bps from 222 bps.

 

Technically near term major resistance is around 1.1100, violation over will take the pair to next level till 1.1180. Major bullish continuation only beyond 1.1180.

 

On the flip side, minor support is around 1.10500 and any indicative break beneath will drag the pair underneath till 1.1000/1.0989 (61.8% fib).

 

It is good to sell on rallies around 1.1070-725 with SL around 1.1105 for the TP of 1.1000.

 

By Rangarajan Hariharan
  • Market Data
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