EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.09% against the USD and closed at 1.1142, amid disappointing economic data and ahead of European Central Bank’s rate decision.
On the macro front, Euro-zone’s flash manufacturing PMI unexpectedly fell to a level of 46.4 in July, marking its lowest level in more than 6.5 years and defying market expectations for a gain to a level of 47.7. The PMI had recorded a level of 47.6 in the previous month. Moreover, the region’s flash services PMI slid to a level of 53.3 in July, in line with market anticipations. In the prior month, the PMI had recorded a level of 53.6.
Separately, in Germany, the flash Markit manufacturing PMI unexpectedly contracted to a 7-year low level of 43.1 in July, confounding market consensus for a rise to a level of 45.2. The PMI had recorded a reading of 45.0 in the previous month. Also, the nation’s flash services PMI dropped to a level of 55.4 in July, less than market expectations. In the preceding month, the PMI had registered a level of 55.8.
In the US, data showed that the flash Markit manufacturing PMI unexpectedly declined to a decade low level of 50.0 in July, defying market anticipations for a rise to a level of 51.0. In the prior month, the PMI had registered a reading of 50.6. Also, the MBA mortgage applications fell 1.9% on a weekly basis in the week ended 19 July 2019, following a drop of 1.1% in the prior week.
On the flipside, the nation’s preliminary Markit services PMI rose to a level of 52.2 in July, more than market expectations for an advance to a level of 51.8. In the prior month, the PMI had recorded a level of 51.5. Further, the nation’s new home sales climbed 7.0% on monthly basis, to a level of 646.0K in June, compared to a revised level of 604.0K in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1136, with the EUR trading 0.05% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1123, and a fall through could take it to the next support level of 1.1111. The pair is expected to find its first resistance at 1.1152, and a rise through could take it to the next resistance level of 1.1169.
Going forward, traders would await the ECB’s interest rate decision along with Germany’s IFO survey indices for July, slated to release in a few hours. Later in the day, the US durable goods orders and advance goods trade balance, both for June followed by the initial jobless claims will keep traders on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
