- EUR/USD is on the defensive, having dived out of key ascending trendline.
- President Lagarde on Thursday said risks to the outlook remain on the downside.
- German and Eurozone PMIs will likely guide the price action on Friday.
EUR/USD fell to seven-week lows on Thursday, breaching support of the trendline connecting Oct. 1 and Nov. 29 lows.
With the downside break of the trendline, the single currency has lost its upward trajectory.
Markets offered euros on Thursday after the European Central Bank (ECB) was seen as more dovish than expected after President Lagarde told a news conference that risks to Eurozone growth are tilted to the downside.
Eyes preliminary PMIs
Germany's Markit Manufacturing PMI for January is forecasted to have risen slightly to 44.5 in January from December's 43.7. Meanwhile, Eurozone's Manufacturing PMI for January is expected to print at 46.8 versus December's 46.3.
A below-forecast reading would validate Lagarde's concerns regarding downside risks to the Eurozone economy and strengthen the bearish pressures around the common currency. In that case, EUR/USD could test support at 1.0981 (Nov. 29 low).
The single currency may find takers if the PMI numbers beat estimates by a big margin, although the bearish outlook would be invalidated only if the pair manages to close above Thursday's high of 1.1109.
Apart from the German and Eurozone PMI numbers, the pair may also take cues from the ECB President Lagarde's speech, due at 10:30 GMT and the US Manufacturing PMI, scheduled for release at 14:45 GMT.
The pair is currently trading near 1.1050, having hit a seven-week low of 1.1036 on Thursday.
|Today last price||1.1051|
|Today Daily Change||-0.0005|
|Today Daily Change %||-0.05|
|Today daily open||1.1056|
|Previous Daily High||1.1109|
|Previous Daily Low||1.1036|
|Previous Weekly High||1.1173|
|Previous Weekly Low||1.1086|
|Previous Monthly High||1.124|
|Previous Monthly Low||1.1002|
|Daily Fibonacci 38.2%||1.1064|
|Daily Fibonacci 61.8%||1.1081|
|Daily Pivot Point S1||1.1025|
|Daily Pivot Point S2||1.0994|
|Daily Pivot Point S3||1.0952|
|Daily Pivot Point R1||1.1098|
|Daily Pivot Point R2||1.114|
|Daily Pivot Point R3||1.1171|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.