EURUSD Retreats from Daily High after better ISM Non-Manufacturing PMI
EURUSD is trading 0.16% higher at 1.1053, in an impressive rally that started from yesterday’s low at 1.0925. On the data front, the US ISM Non-Manufacturing PMI came in at 56.4 in August beating expectations of 54, the United States Factory Orders (month over month) came in at 1.4%, topping expectations of 1% in July. The Markit Services PMI came in at 50.7 in August (final) below forecasts of 50.9, the Composite PMI came in at 50.7 below forecasts of 50.9 in August. Initial Jobless Claims came in at 217K, above forecasts of 215K in August 30. ADP Employment Change came in at 195K in August above expectations of 149K.
EURUSD positive momentum deploys as the pair trades above all major hourly moving averages. Bears are in control for the medium term as the pair trades below the daily moving averages. Important support now stands at 1.1037 the 200-hour moving average while more bids will emerge at 1.1009 the 50 hour moving average. A break below will encourage more bears to join the action and drive the price down to 1.0925 YTD lows and then the 1.0838 low from May 11th 2017.
On the upside, immediate resistance stands at 1.1084 today’s high, a break above can lead prices up to 1.11. Long positions can sit comfortably as long as the pair trades above the psychological 1.10 mark. Bears need a break below 1.0968 to take the upper hand.
The pair will meet support at 1.1033 the daily low which if breached will encourage more bears to join the action, something that is possible to lead the price towards our next supportzone, at 1.1026 YTD lows, before an attempt to 1.10pshcological mark.