- The Euro after rising towards 1.1900 against the US Dollar found resistance and corrected lower.
- The EUR/USD pair is currently testing a major ascending channel support at 1.1830 on the hourly chart.
- Today in the Euro Zone, the German Services PMI for July 2017 was released by the Markit Economics.
- The outcome was below the forecast, as there was a decline in the PMI from 53.5 to 53.1.
EUR/USD Technical Analysis
The Euro remains in a nasty uptrend and moved above the 1.1820 and 1.1880 resistance levels against the US Dollar. The EUR/USD pair even traded above the 1.1900 handle for a new yearly high at 1.1908.
Later, the pair faced a lot of offers and started a correction below the 1.1900 level.
The decline was such that the pair broke the 50% Fib retracement level of the last wave from the 1.1784 low to 1.1908 high.
EUR/USD Hourly Chart
However, the downside move was protected by the 1.1820 support. The 61.8% Fib retracement level of the last wave from the 1.1784 low to 1.1908 high also acted as a support.
Moreover, there is a major ascending channel support at 1.1830 on the hourly chart. The channel support at 1.1830-20 is a crucial zone for buyers.
As long as the pair is above 1.1800, there is a chance of buyers having an upper hand for another upside ride.
German Services PMI
Today in the Euro Zone, the German Services PMI for July 2017 was released by the Markit Economics. The forecast was lined up for no change in the index from the last reading of 53.5.
The actual result was below the forecast, as there was a decline in the PMI from 53.5 to 53.1. Moreover, the Final Germany PMI Composite Output Index posted a decline from 56.4 to 54.7, which is a 10-month low. The report stated that:
The German service sector continued to expand in July, according to the latest PMI® survey data from IHS Markit. That said, the rates of growth in both total business activity and new contracts were the slowest in ten months. More positively, employment increased at a faster pace and firms remained strongly confident regarding the outlook for business activity. Price pressures strengthened slightly in the latest survey.
Overall, the Euro is likely to remains supported near 1.1820 for another upside move in the near term.