4 Nov 2013
EUR/USD above 1.3500 on mixed PMI
FXstreet.com (Edinburgh) -The shared currency regained the 1.3500 handle at the beginning of the week, pushing the EUR/USD beyond 1.3510 after overall decent results from manufacturing PMI in the euro area.
EUR/USD propped up by data
The pair is extending the healthy intraday recovery after the key manufacturing PMI print in Germany climbed to 51.7 during October, surpassing both the median and September’s reading. The EMU’s release banged on estimates at 51.3 while data from Spain, Italy and France came in short of expectations. The Sentix index is due next, with consensus pointing to a raise to 6.5 for the last month, up from 6.1. According to Emmanuel Ng, Strategist at OCBC Bank, “downside risks for the EUR-USD may continue to dominate and a downside breach of the 55-day MA (1.3479) would risk a further unwinding towards the 1.3400 floor”.
EUR/USD levels to watch
The pair is now up 0.16% at 1.3510 and a break above 1.3589 (high Nov.1) would expose 1.3638 (MA21d) and then 1.3696 (low Oct.30). On the downside, the initial support lies at 1.3442 (low Nov.4) ahead of 1.3472 (low Oct.16) followed by 1.3468 (50% of 1.3105-1.3833).
EUR/USD propped up by data
The pair is extending the healthy intraday recovery after the key manufacturing PMI print in Germany climbed to 51.7 during October, surpassing both the median and September’s reading. The EMU’s release banged on estimates at 51.3 while data from Spain, Italy and France came in short of expectations. The Sentix index is due next, with consensus pointing to a raise to 6.5 for the last month, up from 6.1. According to Emmanuel Ng, Strategist at OCBC Bank, “downside risks for the EUR-USD may continue to dominate and a downside breach of the 55-day MA (1.3479) would risk a further unwinding towards the 1.3400 floor”.
EUR/USD levels to watch
The pair is now up 0.16% at 1.3510 and a break above 1.3589 (high Nov.1) would expose 1.3638 (MA21d) and then 1.3696 (low Oct.30). On the downside, the initial support lies at 1.3442 (low Nov.4) ahead of 1.3472 (low Oct.16) followed by 1.3468 (50% of 1.3105-1.3833).