Following the worse than expected Euro Area PMIs and the just-announced improvement in the US Job Market, the EURUSD has moved 75 pips since this morning and is currently trading in the vicinity of the 1.1310 (Fib. 100%) Support level.
The pair broke below the long-term moving average and the middle of the Bollinger Bands earlier today and the Dollar has since continued to gain. Data have been supportive of the trend path, with the continuation of the trend over the next hours conditional on the US PMIs coming out at least as expected.
If the data release abides by or is better than expectations then the pair could likely break through the Support and perhaps even close below the 1.13 mark. On the other hand, if PMIs are worse than expected, then the pair could move towards the 1.14 (Fib. 61.8%) Resistance level, though breaking through the 200-hour MA at approximately 1.139 could provide the immediate Resistance.
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Dr Nektarios Michail
Market Analyst
HotForex
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