EURUSD Looks Poised For New Low

Key Highlights

• A recovery in the EURUSD pair failed this past week, as the pair started to trade lower once again.

• There was a support trend line formed on the hourly chart of the EURUSD pair, which was broken to help sellers gain control.

• Euro Zone Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics today, which is forecasted to remain stable at 52.3.

• In New Zealand, the Visitor Arrivals released report was by the Statistics New Zealand today, which pointed an increase of 8.9% in October 2015.

EURUSD Technical Analysis

The EURUSD pair managed to climb higher this past week towards 1.0760 where it failed completely and started to move lower again. There was a bullish trend line formed on the hourly chart of the EURUSD pair, which was broken recently. The point to note is the fact that the pair settled below the 100 and 200 hourly simple moving average, which is a strong sell signal.

The pair is currently trading near the last swing low of 1.0600-20. A break below it may take the pair further lower may be towards 1.0580. On the upside, the 100 hourly MA can be seen as a major resistance moving ahead that might prevent the upside if the pair corrects higher in the short term.

Euro Zone Manufacturing and Services PMI

Today, the Euro Zone will witness a lot of economic releases, including the Euro Zone Manufacturing Purchasing Managers Index (PMI) (captures business conditions in the manufacturing sector) by the Markit Economics. The forecast is lined up for no change in the PMI from 52.3 in November 2015. Any miss in the result may impact EURUSD pair and might take it lower in the short term.