EUR/USD: 1.3320The Euro was unable to overcome the good resistance in the 1.3380 area, succumbing to the EU Unemployment data that rose to a 25 year high and the weak EU PMI figures, while in the US the ISM Manufacturing Index was slightly stronger than expected at 53.4. This has all meant that the Dollar has remained mixed and the Euro is currently little changed from the pre weekend close, having traded in a choppy 1.3280/1.3380 range today. The official China PMI reading over the weekend was contradicted somewhat by a poor HSBC Private Sector reading (48.3) and took the early steam out of the market.
So we have made little headway in either direction and technically there is again little to add from previous sessions. For the time being, today’s high of 1.3380 will provide a short term cap,. Above here a clean break of 1.3390 is required to provoke a move towards 1.3420 and possibly 1.3485, which remains a formidable level, ahead of the 200DMA. at 1.3586. Further out keep 1.3625 in mind as a possible target.
On the downside a return to 1.3285 would again see bids, with a break leading towards last week’s dip to 1.3250. Below this would see 1.3150 and more choppy range trading. The 4 hour and daily charts for the Euro are still showing little hint of any major directional move, so we still need to take it session by session and remain flexible.
Data today will include the EU GDP & PPI, while from the US we get the FOMC minutes and Factory orders.
It looks like being a rather tedious session until the data and for the time being 1.3280/1.3380 should again cover it. The weeklies are suggesting we may have some upside pressure ahead, but the dailies are pointing nowhere in particular. Given the diminishing interest, with Easter approaching, take it session by session and be flexible, or even better, sidelined!
