The EUR/USD has decreased today, but unfortunately we still don’t have a trading opportunity, the rate continues to move sideways on the short term, so we have to wait for a fresh trading signal. The currency pair could decrease again if the US dollar index will resume the bullish candle, the index will finally close above the 95.57 static resistance and could force the USD to appreciate further versus al its rivals. The price has decreased as the Euro-zone data have come mixed today, the United States data have come in mixed as well.
The Euro-zone Final Manufacturing PMI has remained steady at the 52.6 points, matching expectations, moreover the German Final Manufacturing has remained steady as well, remains at 54.3 points for the second month in August. The French Final Manufacturing has increased from 49.5 to 49.7 points, unfortunately the indicator remains in the contraction area.
The Italian and the Spanish data have come in better, but have failed to lift the European currency, the Spanish Manufacturing PMI rose by 51.0 to 52.3 points, has come better than the 51.6 estimate, the indicator has reached the highest level of the last 5-months, while the Italian Manufacturing PMI has jumped again in the expansion territory, has surged from 49.8 to 51.0 points, more compared to the 50.2 estimate.
The US dollar has increased also because the United States ISM Manufacturing PMI has increased from 49.4 to 51.5 points, the expansion continues after one contraction month, the indicator ha beaten the 50.4 estimate. Moreover the Final Manufacturing PMI rose from 51.4 to 51.5 points, has come better than the 51.4 estimate. The Contruction Spending has dropped surprisingly by 0.7%, despite that the traders have expected to see a 0.3% growth, the indicator continues to drop after the 0.3% decrease from the previous reading period. The ISM Manufacturing Prices remain steady at 53.0 points, even if the estimate was 53.5 points.

The rate continues to move sideways on the short term, has failed once again to stay above the short sliding parallel line (descending dotted line) and now has fallen again below the ascending sliding line (ascending dotted line). The price action is forming a triangle chart pattern, we’ll have a string trading signal when the rate will escape from the chart pattern, so will be better if will tay away from this pair until we’ll have a clear direction. The rate could drop in the coming days if the USDX will climb higher, we’ll have a larger decrease only if the rate will drop below the 1.1123 level and if will drop again inside the descending pitchfork’s body.


The rate is expected to drop again because has failed to make new highs, has found strong resistance and now could approach the upper median line (uml) again, the price has also failed to stabilize above the confluence area formed at the intersection of the two sliding lines, signaling that we could have another leg lower.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.