EURUSD Movement
On Friday, the EUR declined 0.06% against the USD and closed at 1.0978, after the release of the manufacturing and services PMI data across the Euro-zone.
Data released showed that Germany’s flash manufacturing PMI unexpectedly dropped to a level of 51.50, lower than market expectations of an unchanged reading of 51.9 recorded in the previous month, while the services PMI slightly fell to 53.7 in July from 53.8 in June.
Meanwhile, manufacturing and services sector activity in the Euro-zone unexpectedly slowed down in July, dampening the growing optimism about the European economy.
Elsewhere, in France, manufacturing PMI unexpectedly fell into contraction territory in July.
In the US, new homes sales unexpectedly slid 6.8% on a monthly basis in June, following a revised drop of 1.1% recorded in the previous month. Markets were expecting it to rise 0.3% in June. Meanwhile, the preliminary estimate of the nation’s manufacturing PMI slightly edged up to a level of 53.8 in July, from a 20-month low reading of 53.6 in June.
In the Asian session, at GMT0300, the pair is trading at 1.1012, with the EUR trading 0.31% higher from Friday’s close.
The pair is expected to find support at 1.0954, and a fall through could take it to the next support level of 1.0896. The pair is expected to find its first resistance at 1.1041, and a rise through could take it to the next resistance level of 1.1070.
Trading trends in the Euro today are expected to be determined by Germany’s IFO economic survey data, set for release in a few hours. Meanwhile, the US durable goods orders data, scheduled later today would grab lot of market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
