Eurozone manufacturing activity data affected the euro with positive sentiment and the currency rose today.
Good news came from Spain and Germany, who reported that manufacturing activity came in higher than expected. Meanwhile, Italy reported that manufacturing activity contracted. Overall, manufacturing activity in the Eurozone was unchanged from initial release at 52.3.
Technical Analysis:
Intraday preference: BEARISH
Reference Area: 1.0869-1.0906
Euro has pulled back into the reference area at 1.0869-1.0906. Note that hourly stochastic has crossed down and CCI is falling from the overbought area. Added with a dark cloud cover candlestick pattern on hourly chart, euro might fall again to 1.0846-1.0809.
Be careful if the resistance at 1.0906 breaks, because it will turn the intraday bias to bullish and possibly might push euro up to 1.0933-1.0967.
Written by Andrew Bulan, analyst for www.EconomicCalendar.com
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
