EURUSD managed to rebound from 1.1054 daily lows on headlines that US and China agreed to cancel existing tariffs. One more disappointment came from German data as the Industrial Production s.a. (month over month) came in at -0.6%, below forecasts of -0.4% in September, the yearly reading came in at -4.3% also below expectations of -2.9%.
Yesterday, German Services PMI came in at 51.6 beating expectations of 51.2 in October, the Composite PMI came in at 48.96 also above forecasts of 48.6 in October. The France Services PMI came in at 52.9 in line with forecasts the PMI Composite registered at 52.6 in October. Spain Services PMI me in below forecasts while Italy services PMI came in above forecasts.
EURUSD trades close to daily high but below the crucial 100-day moving average which pierced after the news that a trade deal might be delayed for December. On the technical side the momentum is still neutral as the pair trades between the 50 and 100-day moving averages. The rebound from two-year lows at 1.0878 stalled at 1.1172 amid support that risky assets found on better news from US-China trade tensions and Brexit.
On the flip side, EURUSD immediate support stands at 1.1054 daily lows, a break below that level might attract more bears to join the action that may drive the price down to 1.1038 the 50-day moving average. On the upside, immediate resistance stands at 1.1083 today’s high, a break above can lead prices up to 1.1117 the 100-day moving average below an attempt for the 1.1179 monthly high.More content