EURUSD Retreats from Daily High on Weak PMI’s

EURUSD seesaws around the unchanged level as traders await the ECB decision later today. The pair hit the daily high at 1.1162 but retreated after worse than expected Germany PMI figures. Germany Manufacturing PMI came in at 41.9 below forecasts of 42 in October, the Services PMI came in at 51.2, below forecasts of 52, while the PMI Composite came in at 48.6 below forecasts of 48.8. France PMI’s beat expectations the composite PMI came in at 52.6 topping forecasts of 51. European Monetary Union PMI Composite came in at 50.2, below expectations the Manufacturing PMI came in at 45.7, below expectations of 46 and PMI Composite came in at 50.2, also below forecasts of 50.3 in October.

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EURUSD Resistance and Support

EURUSD consolidates around the critical 100-day moving average, the pair started a correction from monthly highs since Monday that stopped at 1.1125 zone. On the technical side EURUSD made an impressive rebound from two-year lows at 1.0878 up to 1.1172 amid support that risk assets found on better news from Brexit AND us-China trade tensions.

On the downside, immediate support stands at 1.1123 daily lows, a break below will encourage more sellers to join the action and drive the price down to 1.1105 the low from yesterday. Next strong support stands at the 50-day moving average at 1.1034. This is the next target to the downside that could be attained on a convincing downside break of the 1.11 critical support level. On the flip side, immediate resistance stands at 1.1162 today’s high, a break above can lead prices up to 1.1172 monthly high.

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