EURUSD consolidates to two-week highs after the three days rebound from the 1.0778 lows. Yesterday the USD was under selling pressure after weak consumer confidence data. The US Consumer Confidence Index for February dropped to 130.7 below the expectations of 132. Also yesterday reported that the Richmond Fed Manufacturing Index came in at -2 below the forecasts of 13 in February.
The pair last week hit 34-month lows after a series of negative economic data from EU and especially from Germany. A positive surprise came from February’s Manufacturing PMI. The Manufacturing PMI came in at 47.8, topping the expectations of 44.8. The PMI signals modest growth of the German economy despite the recent slump in exports. The manufacturing sector in Germany moved closer to stabilization, with the data indicating a slower fall in output, employment and new orders.
EURUSD is 0.10% lower at 1.0870 retreating from the two-week highs. The technical outlook despite the three days rally is still bearish for the pair, but for the short term there is an improvement in the outlook as the EURUSD managed to rebound from the recent lows.
On the downside, first support stands at 1.0862 the daily low. If the EURUSD pair breaks below the next target would be the 1.0829 the low from yesterday’s trading session. Next support will be met at 1.0804 the low from February 24th.
On the other side, immediate resistance for the EURUSD pair stands at 1.0882 the daily top. A break above might target at 1.0925 the high from February 12th. More selling pressure stands would be met at 1.0957 the February 10th high.