The EUR/USD pair has started the week with a slightly positive tone, advancing in the European morning through the 1.0845 level, ahead of the release of the European PMIs. Data came out mixed, generally signaling the rate of growth in the manufacturing sectors has slowed in January, and the German reading resulted at 52.3 against the 52.1 expected and the 52.3 final December reading. The EU figure matched expectations at 52.3.
The US calendar will be pretty busy today, with personal income and spending figures, and the release of the Markit and the ISM Manufacturing PMI, also expected to show an economic deceleration during January.
View the Live chart of the EUR/USD
Anyway and from a technical point of view, there the upward potential is quite limited, as the price continues to struggle around the mentioned Fibonacci resistance, whilst below its moving averages. In the same chart, the technical indicators aim higher below their mid-lines, lacking enough momentum to confirm an upward run. The pair may advance up to 1.0880, while an upward acceleration above the level should send the pair back towards the 1.0920/30 region.
The downside continues to be limited by buying interest around 1.0800, and approaches to that level should be seen as buying opportunities.
Latest updates on the EUR/USD Forecast
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