EUR/USD Technical Outlook (Daily)

Euro

$EURUSD

The USD Bearish trend extended to fresh lows at the beginning of May, down against all of its peers.

The EURUSD advanced up to 1.1534, a mark last seen in August 2015 when Chinese Black Monday sent the USD sharply hundred of pips lower across the board. In the macro-economic front, data coming from Europe showed that the manufacturing sector in the region grew modestly in April, as the final revisions of the Markit manufacturing PMIs came in mixed, with German reading up to 51.8, from March’s 50.7, but below expectations, and the EU figure resulted at 51.7 and French dove to to 48.0.

Things in the US were not better, as the ISM manufacturing declined to 50.8 in April from 51.8 in March, whilst the Markit manufacturing PMI also printed 50.8.

Also released Monday, US construction spending advanced in March to its highest mark in more than 8 years, up 0.3% from the prior month, giving hopes Q-1 slowdown receded, at least in the housing sector.

The single currency stands firmly above the 1.1500 figure, with scope to reach 1.1713, the high reached last August, and well above the 1.1460 region, now a major support mark.

As long as retracements towards the mark attract buying interest, the pair has scope to test such high.

Intra-day charts show that the Bullish tone persists, despite indicators stand in extreme overbought territory. Some technical consolidation can be expected in here, yet additional advances beyond 1.1545, now the 1st resistance, should support an upward continuation for Tuesday.

Support marks:1.1460 1.1420 1.1380
Resistance marks: 1.1545 1.1590 1.1630

Stay tuned

Paul Ebeling

 

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