The Euro (EUR) inched higher against the US Dollar (USD) on Monday, giving the pair a rise of more than 05 pips with which the price went higher than 1.1000. The price increased after the release of major economic news. Considering the last move of the price, the technical bias seems to remain bearish due to the higher low printed on the graph.
EURUSD: Technical Analysis
As of this writing, the EURUSD is being traded around 1.1035. There are a few resistance levels that may clearly be seen on the graph with the first one that may hit the price near 1.1040, it’s the immediate trendline resistance level. The price may face another resistance around 1.1058, the major horizontal resistance before it hits the third resistance level near 1.1105, the confluence of a trend line and horizontal resistance level. This might be the strongest resistance the price may face after which the price might get a reversal back towards the downside as shown in the graph below.
Coming towards the downside, there are some support levels that might help the price to sustain around the current levels. The first support level stands near 1.1016, the immediate Fibonacci level which might prevent the price from falling below the said level. The price may then drop to 1.0900 before it hits 1.0879, the low of October 01, 2019, as shown in the graph above.
European Market Composite PMI Release
From the fundamental perspective, the Price Market Index monthly composite reports released by Markit Economics comprise a large number of business executives in manufacturing & services companies as well as the private sector. Data is normally released on every 3rd working day of the current month.
Every reaction is weighted by the size of the organization and its commitment to add up to assembling or administrations yield represented by the sub-area to which that organization has a place. Answers from bigger organizations greatly affect the last file numbers than those from little organizations. Results are introduced by question solicited, indicating the level of respondents revealing an improvement, decay or no change since the earlier month. Generally speaking, a reading equals to 50 represents no change whereas above then 50 indicates a bullish market and below 50 signals a bearish market ahead.
Since the technical bias might remain bearish, therefore opening up a short or long position might not work in the current week at least.