Key Highlights
Euro enjoyed a decent ride against the US Dollar this past week, as the EURUSD pair traded towards 1.1300.
There was a major break noted, and now if the EURUSD pair stays above 1.1210 more gains are possible.
In Australia, the AIG Performance of Services Index released by the Australian Industry Group came in at 52.3 in September 2015, down from the last reading of 55.6.
EURUSD Technical Analysis
The Euro surged higher this past week against the US Dollar since the US NFP report missed the market expectation and ignited a downside reaction in the US Dollar. The EURUSD pair climbed higher and even cleared a major bearish trend line on the hourly chart.
The EURUSD pair moved as high as 1.1317 where it found sellers for a down-move. The pair traded lower and tested the broken trend lines on the hourly chart along with the 61.8% Fib retracement level of the last wave from the 1.1148 low to 1.1317 high. Moreover, the 100 hourly simple moving average also acted as a support and prevented downsides.
It looks like the EURUSD pair has completed a short-term correction and it might continue to move higher. On the upside, the 1.1260 is a resistance area, followed by the 1.1300 level.
US Services PMI
Today, the US Services Purchasing Managers Index (PMI), which captures business conditions in the services sector will be released by Markit Economics. Any decrease in the services PMI might increase the bearish pressure on the US Dollar moving ahead.
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