On Thursday, trading on the EURUSD pair remained in a sideways trend, moving rather haphazardly within a range of 1.1320 to 1.1364. Wednesday’s intraday high of 1.1371 has provided us with a new resistance level, which must be broken if there’s to be any chance of further growth. On Thursday evening and Friday morning, the EURUSD pair has been seriously testing the lower boundary of the upwards channel. If we get a breakout here, we expect the pair to drop towards 1.1233.

Thursday gave us mixed data from the Eurozone. Germany’s manufacturing PMI came out at 47.6 points, which was worse than the 49.7 points predicted by experts. Meanwhile, the Eurozone’s manufacturing PMI came out slightly better than expected (51.4 points against a forecast of 51.1). Markets are now holding their breath in anticipation of ECB President Mario Draghi’s speech this evening.