Euro remained under heavy bearish pressure and traded below 1.0650 against the US Dollar. More losses likely in EURUSD going forward.
EURUSD Weekly Analysis – Euro Poised For Further Declines
· Euro is under a heavy downtrend against the US Dollar, and recently broke the 1.0800 and 1.0650 support levels.
· There are two bearish trend lines formed on the 4-hours chart of EURUSD, acting as a resistance near 1.0650.
· Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted a rise from 53.5 to 54.1 in Nov 2016 (preliminary).
EURUSD Technical Analysis
The Euro broke down recently against the US Dollar and cleared a couple of important support levels like 1.0800 and 1.0650. The EURUSD pair recently traded as low as 1.0570, and attempted a recovery.
However, the correction could not last long, as there are two bearish trend lines formed on the 4-hours chart of EURUSD, acted as a resistance near 1.0650. Moreover, the pair also found sellers near the 23.6% Fib retracement level of the last decline from the 1.0953 high to 1.0570 low.
It looks like the pair may continue to trade lower, and could even break the last swing low of 1.0570. As long as the highlighted trend lines resistance area is intact, the Euro sellers remain in control.
Trade Idea – If you are looking to enter a sell trade, then consider it near the highlighted trend lines resistance with a stop of around 30-40 pips.
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. The market was expecting a minor decrease from the last reading of 53.5 to 53.3 in Nov 2016 (preliminary).
However, the result was better, as there was a rise of 54.1. Commenting on the report, the Chief Business Economist at IHS Markit, Chris Williamson, stated “The preliminary PMI results for November indicate the sharpest monthly increase in business activity so far this year, with plenty of signs that growth will continue to accelerate”.
Overall, the report was positive, so there can be a minor rise in EURUSD, but the trend lines resistance is a major barrier at 1.0650-60.