After bottoming at 1.2614, the EUR/USD is enjoying some temporal demand in the European morning, following the release of Services and Manufacturing PMIs of local economies. German and the EZ Manufacturing PMIs came out slightly better than expected and above previous month readings, bringing some relief over slowdown concerns. But once again, French readings shrank further below 50: the weakest continue to weaken, the strongest continue to hold. And while temporally positive for EUR, this is no good news for the EZ.
Technically, the 4 hours chart shows signs of a temporal bottom, as indicators bounce from oversold levels, yet stalled around 1.2660, strong static resistance level where it stands. Price in the mentioned time frame remains well below moving averages, with 20 SMA presenting a strong bearish slope, currently offering intraday resistance at 1.2720 in case of further recoveries. Nevertheless, if the pair is unable to advance above current area, risk turns back to the downside, towards mentioned low of 1.2614. Break below it should lead to another round of selling, eyeing 1.2570 in the short term.
View Live Chart for EUR/USD
Technically, the 4 hours chart shows signs of a temporal bottom, as indicators bounce from oversold levels, yet stalled around 1.2660, strong static resistance level where it stands. Price in the mentioned time frame remains well below moving averages, with 20 SMA presenting a strong bearish slope, currently offering intraday resistance at 1.2720 in case of further recoveries. Nevertheless, if the pair is unable to advance above current area, risk turns back to the downside, towards mentioned low of 1.2614. Break below it should lead to another round of selling, eyeing 1.2570 in the short term.
View Live Chart for EUR/USD
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