Forex Trading: EURUSD Technical Analysis- November 05, 2019

The Euro (EUR) inched lower against the US Dollar (USD) on Tuesday, this caused a decrease in the price of EURUSD, bringing it less than 1.1000. The price of the pair decreased after major economic news released. Considering the price movement of the pair over the past few days, it’s predicted that the technical bias may turn bullish on the grounds that the pair’s value denoted a lower high in the recent downside move.

EUR/USD Technical Analysis

Currently, the pair is being traded around 1.1067, The trendline support can be seen around 1.1015, ahead of 1.003, the 23.6% Fib level support and then the horizontal support of 1.0878, which probably prevents the price from decreasing further as appeared in the given below chart.

Eurusd

A resistance that may keep the price from moving above this level can be seen around 1.1142, 32.8% Fib level ahead of 1.1203, trendline resistance and afterward come 1.1304, the major horizontal resistance as shown in the given chart. The technical bias may remain bearish as long as 1.1114, the resistance level remains unblemished.

EUR Markit Manufacturing PMI

In Germany, the figure concerning the Markit manufacturing PMI has risen to  42.1 in the month, as compared to the month before and the economist expectation which was 41.9. The information is sourced from the news released by Markit Economics.

The Index of Manufacturing Purchasing Managers (PMI) captures the manufacturing sector’s business conditions. Given that the manufacturing sector occupies a large part of total GDP, PMI manufacturing is an important indicator of business conditions and the overall economic situation in Germany. The outcome above 50 signals is normally bullish for the EUR and vice-versa.

Trade Idea

Given the pair’s overall price activity over the past few days, purchasing EURUSD around current levels can be a good short to medium term decision.

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