EUR/USD steady near 1.0650 as markets gear up for PMI-heavy Tuesday
- PMI activity data due on both sides of the Atlantic.
- EUR/USD finds middle ground just below 1.0700.
- Markets looking for moderate recovery across the PMI board.
The EUR/USD is testing the waters near 1.0650 after a quiet Monday saw the major pair flatline ahead of a densely-packed economic data docket. Both the US and the wider Eurozone area will see updates to Purchasing Managers Index (PMI) figures on Tuesday, with high-tier US data due in the back half of the trading week as rate-hungry markets continue to froth for rate cuts from the US Federal Reserve (Fed).
Tuesday brings pan-Eurozone HCOB PMIs for April, with the Composite PMI expected to recover to 50.8 in April compared to the previous month’s 50.3. Germany’s Composite PMI is also expected to climb further to 48.6 from the previous 47.7. The broader European Manufacturing PMI is expected to remain in contraction territory but recover ground to 46.5 from the previous 46.1.
On the US side, the S&P Global PMI for April is expected to print at 52.0 for both the Manufacturing and Services components. Manufacturing was last seen at 51.9, while Services last printed at 51.7 in March.
Later this week, US annualized quarterly Gross Domestic Product (GDP) is expected to ease back to 2.5% from the previous print of 3.4%, while March’s Core Personal Consumption Expenditure (PCE) Price Index is expected to hold steady at 0.3% MoM in April.
EUR/USD technical outlook
The EUR/USD pair is holding steady near 1.0650 after a recent tumble from the 1.0880 level, with the Fiber sliding 2.62% peak-to-trough in April. A limited recover from near-term lows just above the 1.0600 handle leaves the pair struggling on the low side of the 200-hour Exponential Moving Average (EMA) as price action looks for a floor.
Daily candlesticks see the way open for an extended decline into the last major swing low near 1.0500, but recent price action could drag the EUR/USD back into the 200-day EMA at 1.0807.
EUR/USD hourly chart
EUR/USD daily chart
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.