China’s Caixin Manufacturing PMI for November was released at 51.8, above the forecast of 51.4. Eurozone PMI was reported above forecast at 46.9, there is improvement in factory activity although it remains below 50 and still pointing to contraction.
At 2pm GMT ECB President Christine Lagarde will make an appearance before the European Parliament. Her speech will be closely watched for clues on to take place on December 12th, which is the day after US Fed Interest Rate Decision.
At 3pm GMT we have the release of US ISM Manufacturing PMI. The forecast points to improvement from 48.3 to 49.2. A reading closer to or above 50 may fuel USD bulls.
EUR/USD on a Daily TF had a robust end of November. The pair dropped below 61.8% Fibo into our next support target area. The price dropped to 1.09812 and then bounced back to the 50% Fibo level, currently trading around 1.10127.
From the technical side of things, the situation for EUR/USD is . On the Daily TF, the price is creating a lower high after meeting resistance at the 50% Fibo level which is also the bottom of the . If we switch to the 1H TF, we see that the price used 200 as resistance, there is a signal crossover, histogram is increasing and the price is trying to move below the 50EMA.
Resistance: R1 38.2% Fibo 1.10647, R2 1.11.
Support: S1 1.10, S2 1.09812, S3 1.09434.