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