EUR/USD Forecast: stuck around 1.0600 ahead of US data
The EUR/USD pair trades uneventfully a few pips above the 1.0600 mark this Wednesday, unaffected by positive local data. The release of the European preliminary Markit PMIs showed that growth remains solid in the region, with the EU manufacturing reading at 54.1 and the services one also at 54.1, both above expectations and final October figures, leaving the Markit Composite PMI at 53.7.French readings beat expectations, while in Germany, manufacturing ticked modestly lower but posted a strong 54.4, while the services sector is estimated to have grew, up to 55 from previous 54.2.
The US macroeconomic calendar will be quite busy, with housing, employment and manufacturing data, although the focus will be on the latest FOMC Minutes. Still, and given that the meeting took place before Trump's victory, the market may pay less attention than usual to the release.
Technically, the EUR/USD pair has been confined to a quite tight range pretty much since the week started, with selling interest containing recoveries in the 1.0650 region, overall maintaining the risk towards the downside. In the 4 hours chart, the price is hovering around a flat 20 SMA, while technical indicators have turned south with the RSI around 42 and the Momentum still neutral, this last showing the absence of speculative interest.
The pair needs to accelerate below 1.0590 to extend its slide down to 1.0560, while below this last, the decline could reach the 1.0505/20 region. Above 1.0650, the corrective movement can extend up to 1.0710, should US data disappoint.
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
