This article is originally referred from TitanFX Market Analysis
- The Euro recently managed to break a major resistance against the US Dollar to open the doors for more gains.
- There was a crucial bearish trend line on the 4-hours chart of the EURUSD pair, which was breached to clear the way for more upsides.
- Today, the German Manufacturing Purchasing Managers Index (PMI) will be released by the Markit economics, which is forecasted to remain at 53.7 in July 2016.
- In China today, the Caixin China Manufacturing PMI™, released by Markit Economics posted a rise from the last reading of 48.6 to 50.6 in July 2016.
EURUSD TECHNICAL ANALYSIS
The Euro after settling above the 1.1100 resistance area against the US Dollar gained further pace. The EURUSD pair broke the 100 simple moving average (H4 chart) to open the doors for more gains.
There was a crucial bearish trend line formed on the 4-hours chart, which was broken during the upside move along with the 200 SMA.
The EURUSD pair traded as high as 1.1196 where it found sellers and currently correcting lower. If there is an extension of the correction, then a move towards the 1.1100 support area is possible.
GERMAN MANUFACTURING PMI
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector will be released by the Markit economics.
The forecast is slated for no change in the PMI from the last reading of 53.7 in July 2016. Moreover, the Euro Zone Manufacturing Purchasing Managers Index is forecasted to also remain unchanged from 51.9. Any miss may result in a minor correction in the EURUSD pair moving ahead.
CHINESE CAIXIN CHINA MANUFACTURING PMI
Today in China, the Caixin China Manufacturing PMI™, which is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies was released by Markit Economics.
The forecast was slated for a minor rise from 48.6 to 48.7 in July 2016. However, the report was positive, as there was an expansion noted, and the Caixin China Manufacturing PMI came in at 50.6.
The outcome lifted the market sentiment and in a way helped the currencies such as the Euro and the Aussie dollar.
Original Source: TitanFX Market Analysis