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EUR/USD keeps range near 1.0860 post-PMIs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - EUR/USD is seen reversing a spike to session highs and hovers around the mid-point of 1.08 handle following the release of the manufacturing PMI reports from Germany and the Euro zone.

    EUR/USD capped below 1.0860


    Currently, EUR/USD trades 0.22% higher at 1.0856, failing to extend beyond 1.0860 levels so far this session. The main currency pair keeps the bid tone intact on the back of persisting risk-off market profile, but lacks momentum as the final manufacturing PMIs prints from the Euro are economies underscore the growth concerns in the 19-nation bloc.

    The German manufacturing PMI decreased to 52.3 in January, after hitting a 4-month high in Dec. While the euro zone's manufacturing PMI cooled off to 52.3 in Jan, down from 53.2 booked in Dec, and hit a fresh three-month low.

    On the USD side-of the story, the greenback remains broadly lower on the back growing speculations over fewer Fed rate hikes this year in wake of the recent series of downbeat US economic data, including the latest advance Q4 GDP data which revealed slower pace of expansion by 0.7% y/y.

    Attention now turns towards the NY session; with the ISM manufacturing PMI as well core PCE price index on cards. Apart from data, ECB Chief Draghi is due to testify about the 2015 ECB Annual Report before the European Parliament, in Strasbourg. While FOMC member Fischer will be speaking at a separate event in New York.

    EUR/USD Technical Levels


    In terms of technicals, the pair finds the immediate resistance is seen at 1.0869/78 (1h 200 & 100-SMA). A break beyond the last, doors will open for a test of 1.0900/12 (round number/ 100-DMA). On the flip side, the immediate support is placed at 1.0809/00 (Jan 29 Low), below which 1.0787/86 (Jan 22 & 25 Low) could be tested.
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