EUR/USD Under Pressure Ahead of Local Data
FxGrow | Feb 21, 2017 18:48
EUR/USD traded narrow on Monday's trading sessions between 1.0632 high and 1.0603 low. Today, the pair confirmed the bearish momentum with a low 1.0577 being pressured by stronger US dollar performance as US Dollar Index gaped upward with a high 101.22. Overall, the uncertainty still revolves around euro with series of pending elections and promises of some parties of breaking out of EU adds a negative aura and recent reports of Greece's debt crisis returning with a vengeance could encourage bearish traders to attack the EUR/USD incessantly.
On the other hand, Draghi, head of ECB, promised that economy in the EU should progress based on Bundesbank (Buba) Germany's Central bank. Recent reports indicates that inflation in EU remains low despite previous recent positive CPI.
Key Points:
"German economy should strengthen in 2017 due to industrial & construction activity and lower unemployment."
"Against a backdrop of a very dynamic order intake, strong impulses can be expected from manufacturing."
Fundamentals for EURO levels:
1-French Flash Manufacturing and Services PMI at 8:00 AM GMT.
2-German Flash Manufacturing and Services PMI at 8:30 AM GMT.
3-EUR flash Manufacturing and Services PMI 9:00 AM GMT.
Fundamentals for USD levels:
1- FOMC member Kashkari will make a speech at 1:50 PM GMT.
2- FOMC member Harker speech 5:00 PM GMT.
3- FOMC meeting minutes tomorrow at 7:00 PM GMT
Technical:
Trend : Down - Bearish - Sideways
Key levels to watch : Daily Pp 1.0617
Resistance levels : R1 1.0634, R2 1.0682, R3 1.0743
Support levels : S1 1.0561, S2 1.0499, S3 1.0424
Remark : Over all EUR/USD remains bearish and negative trend. Closing below S1 levels adds pessimism with additional selloffs and wash at S2&S3 levels. Closing above R3 level is needed for market reverse trend.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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