The Euro (EUR) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of EURUSD to less than 1.1750 following some key economic releases. The technical bias remains bearish because of a lower low in the recent downside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1704. On the downside, a support can be noted near 1.1510, a key horizontal support ahead of 1.1409, the low of last major downside move and then 1.1349, the 50% fib level as demonstrated in the given above chart. The technical bias may turn bullish if the pair breaks the 1.2478 resistance level.
On the upside, a resistance can be noted around 1.1753, the 23.6% fib level ahead of 1.2456, a trendline resistance and then 1.2555, a major horizontal resistance area as demonstrated in the given above chart.
Germany Manufacturing PMI
German manufacturing export sales and new orders grew at their slowest pace in more than two years in June, a survey showed on Monday, adding to signs the sector is cooling as fears of a full-blown global trade war cloud the economic outlook.
Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, fell to 55.9 from 56.9 in May. That matched a preliminary reading.
The sixth consecutive monthly fall from a record high in December produced the lowest figure in 18 months.
Considering the overall price behavior of the pair over last few weeks, buying the EURUSD around current levels can proved to be a good decision in short to medium term.