The currency pair went upwards last week and fluctuated in the middle of the range. However, starting from Thursday, EUR/USD declined. What were the reasons for such fluctuations?
First, strong downtrend on Thursday and Friday was determined by a very weak Eurozone’s PMI data. German manufacturing PMI declined to 44,7. French manufacturing PMI declined to 49,8. As for the services sector, French index declined to 48,7. Common Eurozone’s manufacturing PMI declined to 47,6.
FOMC meeting was another important event last week. The FOMC head’s comments were modest. Powell has mentioned that the FOMC is going to take any further step according to the economic data.
What are the probable scenarios for the currency pair this week? Friday’s decline allowed to test the support at 1,1285. We have also drawn an ascending trend line. This area is important as a rebound is possible here. However, according to the fundamental analysis, the currency pair is able to develop a downtrend as well. WE advise to monitor charts and take decisions after confirmation only.
First, strong downtrend on Thursday and Friday was determined by a very weak Eurozone’s PMI data. German manufacturing PMI declined to 44,7. French manufacturing PMI declined to 49,8. As for the services sector, French index declined to 48,7. Common Eurozone’s manufacturing PMI declined to 47,6.
FOMC meeting was another important event last week. The FOMC head’s comments were modest. Powell has mentioned that the FOMC is going to take any further step according to the economic data.
What are the probable scenarios for the currency pair this week? Friday’s decline allowed to test the support at 1,1285. We have also drawn an ascending trend line. This area is important as a rebound is possible here. However, according to the fundamental analysis, the currency pair is able to develop a downtrend as well. WE advise to monitor charts and take decisions after confirmation only.