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EURUSD Breaks to the Upside of Triangle; Can It Rally With Euro Zone PMIs Ahead?

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Written By: Angeline Feliciano

May 21, 2020, 06:04 BST 06:04

EURUSD

Summary:

EURUSD has broken above its symmetrical triangle, suggesting that buyers are dominating sentiment. But with today's roster of euro zone PMIs, can it rally?

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.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.