EURUSD Gains Strength Ahead of US Manufacturing PMI News

FXOpen

The Euro (EUR) extended upside movement against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.0950 ahead of some key economic events. The technical bias remains bullish due to a Higher High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.0959. A hurdle can be seen around 1.1000, the confluence of psychological number as well as 50% fib level ahead of 1.1102, the 38.2% fib level as demonstrated in the following daily chart.

EURUSD Gains Strength Ahead of US Manufacturing PMI News

On the downside, the pair is likely to find a support around 1.0877, the 61.8% fib level ahead of 1.0818, the low of the last major dip and then 1.0800, the psychological number. The technical bias will remain bullish as long as the 1.0818 support area is intact.

ISM Manufecturing

The Institute of Supply Management (ISM) is due to release the US manufacturing report today during the early New York session. According to the median projection of different economists the ISM Manufacturing PMI index remained 52.0 points in May as compared to 51.5 points in the month before. Generally speaking, higher ISM manufacturing report is seen as bullish for the US Dollar and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term because of the bullish pin bar that emerged last week, indicating considerable strength in the price action. The trade should however be stopped out on a daily closing below the bullish pin bar candle as described above.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.