The EURUSD is up by 0.15% as the latest developments in vaccine pushes investors away from the dollar. Indeed, the dollar index has dropped by about 0.15% in early trading.
Later today, the EUR to USD price will react to preliminary manufacturing and services PMI numbers from Europe and the United States. In general, because of the fresh lockdowns in November, analysts believe that the data will show an overall decline in manufacturing and services activities.
In Europe, they expect the services PMI will drop to 42.5 mostly because of sectors like hotels, restaurants, and tourism. The manufacturing sector is expected to remain above 50. Similarly, in the US, analysts polled by Reuters expect the data to show that services PMIs dropped to 55.3 while manufacturing PMI fell to 53.0.
On the hourly chart, we see that the EURUSD price is slightly above the red ascending trendline that connects the lowest levels on Friday and today. It is also below the ascending channel that is shown in black. The price has also moved above the 23.6% retracement level.
Therefore, for today, I predict that the upward trend will continue as bulls aim for the next resistance at 1.1900, which is both an important psychological level and at the lower side of the channel. On the flip side, a move below today’s low of 1.1850 will invalidate this trend.
