EURUSD Unfazed As European Services PMI Beat Expectations

EURUSD continues the consolidation phase between 1.12 and 1.1270 as the attempt for a break out above the 1.13 mark met stiff resistance. Risk-on sentiment supports the common currency, while the coronavirus risk is USD positive. The economic data from both sides of the Atlantic beat forecasts.

Earlier today better than expected services PMI failed to help the euro. The European Monetary Union Services PMI came in at 48.3 above the forecasts of 47.3 in June, while the PMI Composite came in at 48.5 also above the expectations of 47.5.

Germany Services PMI Beat Forecasts

The Germany Services PMI reported at 47.3, topping the expectations of 45.8 in June. The Germany PMI Composite registered in at 47 above the estimates of 45.8.
From France, the Markit Services PMI came in at 50.7 above analysts expectations of 50.3. The PMI Composite was at 51.7 also above the forecasts of 51.3 in June.

Yesterday, the NFP data surprised positive the investors. The Nonfarm Payrolls came in at 4,8 million, beating the analyst’s expectations of around 3 million in June. The 4.8 million new additions were the most jobs to be created in a month since the records began in 1939. The Unemployment Rate came at 11.1%, beating the consensus of 12.3%. The Average Hourly Earnings came in at 5% below the forecasts of 5.3%.

EURUSD Daily Technical Analysis

EURUSD is 0.06% lower at 1.1231 as the pair looking for direction and a break of the recent trading range. Bulls are in control of the pair but need more steam to break above the 1.13 resistance point. A break below the 50-day SMA could challenge the positive momentum. 

On the upside, the initial resistance for EURUSD pair stands at 1.1249 the daily top. If the pair breaks that resistance, then the next hurdle is at 1.1300 the high from July 2 trading session. A move above might pave the way for a test of the June 24 highs at 1.1371.

On the contrary, first support for the EURUSD stands at 1.1219 the daily low. Next support zone would be met at 1.1200 – 1.1190 area the low from July 1. If the EURUSD breaks that support, then the next target for sellers is at 1.1164 the low from June 22 trading session. 

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EURUSD Daily Chart

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