The Euro (EUR) finally managed to break through the resistance levels and started recovering against the US Dollar right after the market composite PMI was released. Following a bearish trend since last few months, it now heads up escalating to cross the figure around 1.1200.
However, the market manufacturing PMI appeared to have negative stats since it remained below than 50 this month, following the same trend since the last couple of months.
Currently, the pair is being traded around 1.1227 having crossed two of the immediate hurdles successfully including the major horizontal and trendline resistance already. It seems that the pair will break through the resistance levels and rise up.
The Market PMI composite news also suggests a favorable economic condition for the pair with a reading of 53.6, this month as compared to 52.8, the previous month. The reading remained higher than the consensus of the market leaders which was 52.7.
The Market Economics release monthly PMI composite stats on the manufacturing and service sectors after taking into account the contribution made by each sector towards the total manufacturing output of the country. A reading above than 50 is supposed to have a positive impact and vice versa.
Trading EURUSD for a short term position can be profitable but opening a long term position might not work.