EUR/USD: Corrective movement to stop at 1.1160
|The EUR/USD pair has retreated from the three-month high at 1.1227 ahead of the ADP release, which came in better than expected, but FXStreet’s Chief Analyst Valeria Bednarik expects the common currency to remain well supported above the 1.1160 level.
Key quotes
“Markit released the final versions of May European PMIs. For the Union, the services index resulted at 30.5, while the Composite index improved to 31.9. German figures were also upwardly revised from preliminary estimates, although contraction remains at record levels in all of the EU. The Producer Price Index in the region contracted by 2.0% monthly basis in April, while it slid by 4.5% when compared to a year earlier.”
“The ADP survey on private jobs’ creation showed a loss of 2.76 million positions in May, much better than the 9 million expected. Later today, the country will release the official ISM Non-Manufacturing PMI, foreseen at 44 in May from 41.8 In April.”
“In the 4-hour chart, EUR/USD continues to develop above a bullish 20 SMA which stands over 200 pips above the larger ones. The Momentum indicator eases within positive levels, while the RSI remains in overbought territory. A downward corrective movement seems unlikely, with buying interest set to defend the 1.1160 static support area.”
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