EUR/USD tests into the midrange ahead of PMI-packed Wednesday

EUR/USD finds itself close to the 200-day SMA as investors brace for PMI figures.
Wednesday sees preliminary PMI January data for both the EU and the US.
Markets expect a European uptick but flattening US services.

Joshua Gibson FXStreet

EUR/USD drifts into a key midrange figure early Wednesday as European and US Purchasing Managers’ Index (PMI) figures loom over the market for the mid-week trading session.

Markets are broadly expecting pan-European HCOB Composite PMI figures to rebound in January from 47.6 to 48.0, which would represent an eighth straight month of sub-50.0 combined PMI activity for the European continent.

On the US side, market forecasts are looking for the S&P Global Manufacturing PMI component to hold steady at 47.9 while the Services PMI component is expected to tick down from 51.4 to 51.0.

After PMIs are done landing on markets, Thursday brings another rate call and monetary policy statement from the European Central Bank (ECB), which has broadly forecast a lack of movement on interest rates until the summer months barring any drastic changes to underlying economic figures. Still, investors will be keeping a close eye on the ECB’s policy statement for any clues about how deep into dovish or hawkish territory ECB President Christine Lagarde and her cohort of central bank policymakers are leaning following Wednesday’s PMI activity expectation figures.

Thursday also sees an update to US Gross Domestic Product (USD) on an annualized basis, with YoY GDP forecast to trim back to 2.0% from 4.9% for the year ended in December.

EUR/USD Technical Outlook

The EUR/USD saw a quick plunge into touch range of 1.0820 following a harsh rejection from the 200-hour Simple Moving Average (SMA) just above 1.0910, sending the major pair back below the 1.0900 handle for the third time in a week.

Daily candlesticks show the EUR/USD coiling tightly into the midrange as broad-market momentum tilts into the middle, and the pair is adrift on market tides in a congestion zone between the 50-day and 200-day SMAs near 1.0925 and 1.0850 respectively.

EUR/USD Hourly Chart

EUR/USD Daily Chart

EUR/USD

Overview
Today last price	1.0859
Today Daily Change	-0.0025
Today Daily Change %	-0.23
Today daily open	1.0884

Trends
Daily SMA20	1.0958
Daily SMA50	1.0921
Daily SMA100	1.0771
Daily SMA200	1.0846

Levels
Previous Daily High	1.091
Previous Daily Low	1.088
Previous Weekly High	1.0967
Previous Weekly Low	1.0844
Previous Monthly High	1.114
Previous Monthly Low	1.0724
Daily Fibonacci 38.2%	1.0891
Daily Fibonacci 61.8%	1.0898
Daily Pivot Point S1	1.0873
Daily Pivot Point S2	1.0862
Daily Pivot Point S3	1.0844
Daily Pivot Point R1	1.0902
Daily Pivot Point R2	1.0921
Daily Pivot Point R3	1.0932

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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