Remember the symmetrical triangle I pointed out on EURUSD yesterday? Well, the general dollar weakness in yesterday’s New York session was enough to push the currency pair above the upper resistance level. When you enroll in our free forex trading course, you will learn that an upside break on a symmetrical triangle is often interpreted as a sign that there are enough buyers in the market. Now the question is, can EURUSD rally with today’s roster of PMIs from the euro zone?
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Beginning at 8:15 am GMT, France will release its PMI reports for May. The services PMI is eyed at 27.9 while the manufacturing PMI is anticipated at 36.0. Then at 8:30 am GMT, Germany’s services PMI is estimated at 26.3 while its manufacturing PMI is forecasted at 39.3. At 9:00 am GMT, the euro zone manufacturing PMI is eyed at 38.0 while the services PMI is expected at 25.0.
Better-than-expected readings could be bullish for EURUSD and help it rally to its March 27 highs at 1.1145. On the other hand, disappointing data could push the currency pair lower. It’s worth noting that on the daily time frame, EURUSD is still limited by the 100 SMA and 200 SMA. If resistance around 1.0980 holds, the currency pair could fall to last week’s lows at 1.0785.
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