EURUSD Looks Poised For New Low

EURUSD Looks Poised For New Low

Key Highlights            

  • A recovery in the EURUSD pair failed this past week, as the pair started to trade lower once again.
  • There was a support trend line formed on the hourly chart of the EURUSD pair, which was broken to help sellers gain control.
  • Euro Zone Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics today, which is forecasted to remain stable at 52.3.
  • In New Zealand, the Visitor Arrivals released report was by the Statistics New Zealand today, which pointed an increase of 8.9% in October 2015.

EURUSD Technical Analysis

The EURUSD pair managed to climb higher this past week towards 1.0760 where it failed completely and started to move lower again. There was a bullish trend line formed on the hourly chart of the EURUSD pair, which was broken recently. The point to note is the fact that the pair settled below the 100 and 200 hourly simple moving average, which is a strong sell signal.

EURUSD

The pair is currently trading near the last swing low of 1.0600-20. A break below it may take the pair further lower may be towards 1.0580.

On the upside, the 100 hourly MA can be seen as a major resistance moving ahead that might prevent the upside if the pair corrects higher in the short term.

Euro Zone Manufacturing and Services PMI

Today, the Euro Zone will witness a lot of economic releases, including the Euro Zone Manufacturing Purchasing Managers Index (PMI) (captures business conditions in the manufacturing sector) by the Markit Economics. The forecast is lined up for no change in the PMI from 52.3 in November 2015. Any miss in the result may impact EURUSD pair and might take it lower in the short term.

New Zealand Visitor Arrivals

Today during the Asian session, the New Zealand Visitor Arrivals, which measures the number of visitors to New Zealand was released by the Statistics New Zealand. The outcome was not very impressive, as there was an increase of 8.9% in visitor arrivals in October 2015, compared with October 2014. The last increase was 12.2%.

There was bearish pressure on the risk sentiment during the Asian session, and as a result, the pairs like AUDUSD and NZDUSD traded lower.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

Aayush's latest posts