The EUR/USD dropped aggressively today and has reached fresh new lows, has decreased significantly after the United States economic figures were released, the numbers have come in mixed, but have boosted the greenback. The USD has rallied versus the Euro as the US dollar index has kissed new highs, has increased as much as 101.91 and is was very close to hit the 102.00 psychological level, but has retreated a little in the last two hours. The US dollar index continues to climb on the short term and is forcing the greenback to dominate the currency market.
The EUR/USD has fallen even if the Euro-zone data have come better today, except the German Flash Manufacturing PMI, which has dropped from 55.0 points to 54.4 points, has come in below the 54.8 estimate. The Euro wasn’t inspired by the Euro-zone Flash Services PMI, which has increased from 52.8 to 54.1 points in November, beating the 53.1 estimate, while the Flash Manufacturing PMI has increased from 53.5 to 53.7 points, even if the economists have forecasted a decrease to 53.2 points. Moreover the German Flash Services PMI rose from 54.2 to 55.0 points, exceeding the 54.1 estimate. The French Flash Services PMI has come better as well, has surged from 51.4 to 52.6 points, beating the 52.1 estimate, signalling that the expansion continues in the services sector, the Flash Manufacturing PMI has come in line with expectations.
The greenback has rallied despite the mixed data, the Unemployment Claims have increased from 233K to 251K jobs in the previous week, the Initial Claims have jumped much above the 241K estimate, the indicator has reached the highest level of the last two weeks, while the New Home Sales have fallen unexpectedly lower, from 574K to 563K, even if the specialists have forecasted an increase to 591K. The greenback has received a helping hand from the Durable Goods Orders, which have increased by 4.8% in October, more versus the 1.2% estimate, the indicator has increased sharply versus the 0.3% drop from September, while the Core Durable Goods Orders has increased by 1.0%, beating the 0.2% estimate. The HPI rose by 0.6%, beating the 0.5% forecast, moreover the Revised UoM Consumer Sentiment rose to 93.8 points, has come in better than the 91.6 estimate.

EURUSDd-6

The rate has managed to break below the dynamic support from the lower median line (lml) of the descending pitchfork and was almost to touch the 1.0521 static support. The perspective remains bearish on the short term as long as the rate is trading inside the descending pitchfork’s body or below it. Technically should drop further if will stabilize below the broken lower median line (lml), we’ll have a minor rebound only if will close again above the dynamic support.

EURUSDh-6

I’ve added the H4 chart to show you better the price action, the rate could retest the broken dynamic support before will drop deeper, but a failure to stay below this obstacle will help the buyers to push the rate towards the median line (ml) of the descending pitchfork.

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Olimpiu Tuns

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