- Summary:
- EURUSD is trading around its 9-week highs today on the back of dollar weakness and euro zone and US ISM manufacturing PMIs could dictate its direction.
EURUSD is trading around its 9-week highs on the back of dollar weakness. Over the weekend, protests in the US broke out in over 30 states. On the 1-hour chart, it can be seen that EURUSD is testing Friday’s highs. If buyers are able to sustain their momentum, we could soon see the currency pair rally to 1.1230 where it topped on December 31.
What could push EURUSD higher?
There are a handful of PMI reports due to come out from the euro zone today. If they print better than expected, the currency pair could find some bids in the market. At 8:50 am GMT, the French final manufacturing PMI is expected to print at 40.3. Then at 8:55 am GMT, the German final manufacturing PMI is seen to come in at 36.8. Meanwhile, at 9:00 am GMT, the euro zone’s final manufacturing PMI is eyed at 39.5.
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Alternatively, if these reports fail to top expectations, the euro could weaken. It’s also noteworthy to mention that the US manufacturing PMI report for May is also scheduled to come out later at 3:00 pm GMT. It is expected to come in at 43.5. A better-than-expected reading for the US ISM manufacturing PMI could be bullish for the dollar and weigh down EURUSD.
This could mean that resistance on EURUSD may hold. If it does, it could drop to 1.1088 where it may test the rising trendline (from connecting the lows of May 26, May 27, and May 28). This price also corresponds to the currency pair’s May 29 lows.