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 1.1744. On the downside, a support can be noted near 1.1610, a key horizontal support ahead of 1.1509, the low of last major downside move and then 1.1449, 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 Services PMI
Services in the euro area slowed more than expected in May, led by the region’s two biggest economies. A purchasing managers’ index of services fell to 53.8 on Tuesday, slightly below the initial estimate and down from 54.7 in April. While still above 50, indicating expansion, the report adds to signs that growth in the 19-nation currency bloc may be losing momentum.
The composite PMI index was unchanged from its flash estimate of 54.1, an 18-month low.
European Central Bank officials are carefully watching economic reports as they prepare to set out the future path for monetary policy. Asset purchases are currently set to expire in September, although they could be extended if the growth and inflation outlook warrants further stimulus.
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.