EUR/USD in a vulnerable spot ahead of PMI data later

Technical Analysis

Author: Justin Low | eurusd

EUR/USD broke below the 100-day moving average and a trendline support after ECB Lagarde's press conference yesterday

EUR/USD D1 24-01
ForexLive
To be fair to Lagarde, she kept her moniker as the owl during her press conference. However, the softer risk mood and the fact that there was no hawkish tilt despite recent data improvement saw the euro pull back a little in the aftermath.

From a technical perspective, there was much to take note of in overnight trading.

EUR/USD price broke below its 100-day MA (red line), reaffirming a more bearish bias and price also took out a trendline support just under the key level as well.

At the moment, price continues to linger near the 6 December support @ 1.1040 but the pair looks vulnerable to further downside if sellers can find the right push. Further support is then seen closer towards 1.1000 and the November lows around 1.0989.

That may come in the form of PMI data later should we not see a significant improvement in euro area economic conditions as anticipated in January. France will be reporting first in just about ~30 minutes from now before we get German readings at 0830 GMT. 

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose