- The Euro after trading towards 1.0880 against the US Dollar found support and recovered.
- The EURUSD pair is currently trading near a bearish trend line with resistance at 1.0915 on the hourly chart.
- The Euro Zone Services Purchasing Managers Index (PMI) for April 2017 released by the Markit economics posted a rise from 56.2 to 56.4.
EURUSD Technical Analysis
The Euro maintained a stable bias against the US Dollar with a slight downside push towards 1.0880. The EURUSD pair traded as low as 1.0873 recently where it found support and started recovering.
The pair gained pace after the positive release of the Euro Zone Services PMI, and popped above the 1.0895 resistance and the 38.2% Fib retracement level of the last decline from the 1.0935 high to 1.0873 low.
At the moment, the pair is trading near a bearish trend line with resistance at 1.0915 on the hourly chart.
EURUSD Hourly Chart
The same trend line resistance coincides with the 61.8% Fib retracement level of the last decline from the 1.0935 high to 1.0873 low.
The last 2 candles look bullish, and suggest a break above the trend line at 1.0915.
The hourly RSI is also moving above 55, which means there is a high chance of EURUSD breaking higher and retesting the last swing high at 1.0935.
Euro Zone Services PMI
Today in the Euro Zone, the Services Purchasing Managers Index (PMI) for April 2017 was released by the Markit economics. The market was expecting no change in the PMI from the last reading of 56.2 in April 2017.
The actual result was better than the forecast, as the Euro Zone Services PMI increased from 56.2 to 56.4 in April 2017.
Commenting on the report, the Chief Business Economist at IHS Markit, Chris Williamson, stated:
With the final reading coming in slightly above the earlier flash estimate, the PMI surveys portray an economy that is growing at an encouragingly robust pace and that risks are moving from the downside to a more balanced situation.
Overall, the EURUSD pair may soon gain pace and break the 1.0920 resistance for a move towards the last swing high at 1.0935.