The EUR/USD has found strong support and now is fighting hard to rebound and to recover after the last week’s impressive drop. Has increased in the morning, but the sellers’s have stepped in again and have forced the rate to decrease again, price has reached new lows, but wasn’t able to stay there.
Right now is trying to approach the 1.0679 today’s high, but I want to remind you that the rate remains under pressure on the short term, could decrease anytime if the US dollar index will have enough directional energy to jump and to close above the 100.64 last week’s high.
The USDX has found temporary resistance right above the 100.54 static resistance and now has slipped lower, could drop even deeper if will fail to close above this level. However, the USDX maintains a bullish perspective on the short term, even if we’ll have a minor retreat in the upcoming days, the index is expected to approach and reach the 101.00 psychological level after the false breakout below the 99.12 static support.
The Euro has managed to increase in the morning ahead of the Euro-zone data, but unfortunately the figures have come in mixed, the Spanish Manufacturing PMI dropped from 54.8 to 53.9 points in March, even if the traders have expected a drop to 54.6 points, signalling that the expansion has slowed down significantly. The Euro-zone Unemployment Rate has fallen from 9.6% to 9.5% in February, matching expectations, moreover the PPI rose by 0.0%, less versus the 0.2% forecast, the Final Manufacturing PMI remained steady at 56.2 points, despite that the economists have expected an increase to 56.3 points. The German Final Manufacturing PMI remains unchanged at 58.3 points for the second month in March, matching expectations, while the French Final Manufacturing PMI dropped from 53.4 to 53.3 in March, has come below the 53.4 estimate.
The Euro has received a helping hand from the Italian Monthly Unemployment Rate, the economic indicator has decreased from 11.8% to 11.5%, despite that the traders have expected to see an increase to 11.9% in February, the Italian Manufacturing PMI has beaten the specialists expectations, has surged from 55.0 to 55.7 points, exceeding the 55.2 prediction.
The greenback has lost ground again in the last hours as US data have failed to impress today, the US ISM Manufacturing PMI has decreased from 57.7 points to 57.2 points in March, matching expectations, signalling that the expansion has slowed down, moreover the Final Manufacturing PMI fallen from 53.4 to 53.3 points, has decreased surprisingly as the specialists have expected to see an increase to 53.5 points. Moreover the US Construction Spending increased by 0.8%, less versus the 1.0% estimate, but has come better versus the 0.4% drop in the previous reading period, the ISM Manufacturing Prices surged from 68.0 to 70.5 points, exceeding the 68.5 estimate. The EUR/USD increased as the United States Total Vehicle Sales have decreased from 17.6M to 16.6M, much more more versus the 17.4M estimate.


The currency pair has found strong support and now is approaching the outside sliding parallel line (descending dotted line), could drop much deeper if will fail to jump above the mentioned dynamic resistance (support has turned into support). The sell-off has invalidated the potential Inverse Head and Shoulders pattern, the corrective phase was natural after the false breakout above the warning line (WL1) and after the failure to stabilize inside the ascending pitchfork's body. Could still drop to reach the confluence area formed by the UML with the warning line (wl1), we could have a great buying opportunity from there if the rate will be rejected.

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