The Euro (Eur) slid down against the US Dollar on Thursday with a reporting figure of less than 1.1100. The decrease in the price occurs amid major economic release. Since a higher low was printed during the last upside move, the technical bias is going to be bearish ahead. The price is expected to drop down even more.
EUR/USD: Technical Analysis
At times, the pair is being traded around 1.1003, with multiple resistance ahead including the foremost resistance level which may restrict the price from moving upside stands around 1.1082, it is also known as 38.2% Fib level. the price may then comes across another resistance around 1.1153, the trendline resistance and then 1.1208, the major horizontal resistance level might stick the price to stay below the said level.
On the other hand, support may be seen around 1.0962, the horizontal support level ahead of 1.0900, the psychological number and then 1.0879, the low of October 01, 2019 as shown in the graph above. The technical bias may remain bearish if the price kept decreasing, a reversal is badly needed around 1.0962 which is the key horizontal support level.
European Manufacturing PMI Release
Considering a fundamental perspective, The PMI monthly Composite Reports on Manufacturing and Services, released by Markit Economics, takes into account a large population of business executives, be they are employed in private sector or rendering services in the manufacturing & services industry. Data is normally released on the third working day of every month. Then the weighted average is calculated based on the participation of the respective department in the overall growth of the country’s economy. Generally speaking, a reading above 50 indicates a bullish market for the Euro (Eur) and vice versa.
Keeping in view the previous performance of the pair over the last few days, trading EURUSD around current levels might not be a wise decision in the short to medium term.