By Fast Brokers
The EUR/USD is rallying slightly, awakening from its consolidative slumber earlier in the week. The currency pair hopped above our 2nd tier downtrend line, but is having difficulties with our 3rd tier uptrend line. Therefore, we’re cautiously optimistic. However, the EUR/USD has climbed over the highly psychological 1.30 level. The relative strength in the Euro comes after all of the manufacturing and services PMI data beat estimates. Though the number all indicate contraction, at least an upward swing in momentum is forming. If the currency pair can sustain gains from present levels, then it may have something worthwhile to build from. The EUR/USD will ultimately follow U.S. equities due to their tight economic interconnectivity. As a result, any positive developments in the EUR/USD could be squashed if U.S. equities tumble. On the other hand, the Euro should keep some relative strength due to the performance of recent economic data unless tomorrow’s business climate release comes in below analyst expectations. If the EUR/USD can close above our 3rd tier uptrend line on the 4-hour we could see a nice pop towards 4/10 lows. On the flipside, any decline could be deflected by our 2nd tier downtrend line. However, we wouldn’t be surprised to see the EUR/USD consolidate around 1.30 should U.S. equities move lower today. Fundamentally, we find supports of 1.3017, 1.2982, 1.2953, 1.2919, and 1.2833. To the topside, we see resistances of 1.3050, 1.3091, 1.3126, 1.3167, and 1.3211. The EUR/USD is currently exchanging at 1.3017.
Market Commentary provided by Fast Brokers.
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