EUR/USD Analysis: Euro Showing Signs of Strength
Today news was published about the values of PMI indices for European economies. Data from France was encouraging:
→ French Flash Manufacturing PMI: actual = 46.8, expected = 43.5, a month ago = 43.1;
→ French Flash Services PMI: actual = 48.0, expected = 45.7, a month ago = 45.4.
Data from Germany were less optimistic, so the euro's rise was interrupted, but in the end the euro still rose in price on this news relative to other currencies.
For example, the price of EUR/JPY broke through the resistance level of 163 yen per euro — the euro rose to this level for the first time since November last year.
The EUR/USD chart shows an attempt to break out of the bearish channel (shown in red). Of interest are:
→ level 1.08 – it acted as resistance in mid-February, but is already showing signs of support;
→ level 1.09 – the price of EUR/USD also reacted to it in the past, and in addition – in this area there is a 50% Fibo level from the decline in A→B;
→ the resistance line (drawn from point A in purple) can also affect the price.
How strong the bulls really are will be determined by the price action near the block of the listed resistances, as well as by the reaction to news about the US PMI; data will be published today, at 17:45 GMT+3.