When will the ISM Manufacturing Purchasing Managers’ Index report be released, and how could it affect EUR/USD?
The ISM Manufacturing PMI report is scheduled for release at 15:00 GMT on Friday. Ahead of the data release, the US Dollar struggles to regain its footing. The EUR/USD pair fell pretty much straight ever since hitting 1.1139 by the end of December, bottoming mid-February at 1.0694.
Valeria Bednarik, FXStreet Chief Analyst, notes: “Measuring the December/February slump, the 38.2% Fibonacci retracement comes at 1.0865, where sellers rejected advances in the last few days. So far, buyers defended the downside at around the 23.6% retracement of the same slide at 1.0799, with EUR/USD trading mid-way between Fibonacci levels. The pair would need to break any of those extremes to become more attractive to speculative interest.”
Bednarik adds, “The ongoing advance seems a mere correction, and even if the pair manages to extend gains beyond the 1.0860 area, EUR/USD would need to break through 1.0970, the 61.8% retracement, to confirm a sustainable recovery. EUR self–weakness, however, plays against the bullish case. To the downside, the 1.0800 area is indeed providing support, with a break below it opening the door to a retest of the monthly low. In the meantime, the pair will likely extend its consolidative phase ahead of a directional catalyst that could affect the market’s perspective about upcoming Fed moves
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.