EUR/USD: Mildly bid, but below key hurdle, focus on Eurozone PMIs

EUR/USD's weekly inside bar candlestick pattern makes Friday's close pivotal.
Upbeat German PMI could put a strong bid under the EUR.
A weekly close above 1.1086 is needed to boost bullish prospects.

Omkar Godbole FXStreet Contributor

EUR/USD is mildly bid at press time and may gather upside traction in Europe if the preliminary German and Eurozone Purchasing Managers' Indices beat estimates.

The currency pair is currently trading at 1.1025, representing 0.07% gains on the day, having hit a low of 1.1010 earlier today.

EUR/USD fell 0.50% last week and traded well within the preceding week's high and low. Essentially, the pair created a bearish inside bar candlestick pattern on the weekly chart.

The focus, therefore, is on Friday's close. The bullish prospects would improve significantly if the pair ends above last week's high of 1.1086 on Friday. Meanwhile, a close below 1.0996 (last week's low) would imply bearish continuation.

Focus on PMIs

The German Markit Manufacturing PMI (Sep), scheduled for release at 07:30 GMT, is expected to show the manufacturing activity remained in contraction. The index is expected to print at 44.00 vs 43.5 in August.

The Eurozone Manufacturing PMI (Sep) is expected to print at 47.3 vs 47.00.

Markets have priced in the European Central Bank's (ECB) recent decision to restart the quantitative easing program from November. Hence, the EUR could rise sharply if the preliminary PMIs beat estimates.

Technical levels

EUR/USD

Overview
Today last price	1.1025
Today Daily Change	0.0007
Today Daily Change %	0.06
Today daily open	1.1018

Trends
Daily SMA20	1.1039
Daily SMA50	1.111
Daily SMA100	1.1176
Daily SMA200	1.1253

Levels
Previous Daily High	1.1068
Previous Daily Low	1.0996
Previous Weekly High	1.1084
Previous Weekly Low	1.099
Previous Monthly High	1.1251
Previous Monthly Low	1.0962
Daily Fibonacci 38.2%	1.1024
Daily Fibonacci 61.8%	1.104
Daily Pivot Point S1	1.0987
Daily Pivot Point S2	1.0956
Daily Pivot Point S3	1.0916
Daily Pivot Point R1	1.1059
Daily Pivot Point R2	1.1099
Daily Pivot Point R3	1.113

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.