Forex EUR/USD USD/JPY GBP/USD USD/CHF USD/CAD AUD/USD NZD/USD EUR/GBP EUR/JPY

EUR/USD: Has The Euro Rebounded Or Is This Just A Temporary Correction?

Technically speaking, the Euro is now under pressure, as traders were short selling it after a massive drop. However, it has slightly rebounded this morning. The Euro might be considered weak, especially if it reaches 1.2445, which is a critical level that can cause the continuation of the bearish trend. Any upside trend for the euro might be a temporary corrective move. The level below 1.2700 is still considered bearish; while it is at an extreme when it is trading below 1.2500.

Below are the euro’s  major Resistance (R) & Support (S) levels:

S2

 
S1

 
Pivot Point

 
R1

 
R2

 
1.2447

 
1.2502

 
1.2530

 
1.2545

 
1.2560

 

As for today’s figures, we’ll start from the UK, where the Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Managers Index (PMI) will be released; measuring the activity level of purchasing managers in the construction industry.

A reading above 50 indicates an expansion in the construction industry; while a reading below 50 indicates a contraction.

This reading provides an insight into the health of the UK construction sector. Traders watch these surveys closely as the purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

  • Forecast: 63.5 
  • Previous: 64.2 

A higher than expected reading should be taken as positive for the GBP, while a lower than expected reading should be taken as negative for the GBP.

Moving to the U.S., where the Trade Balance is scheduled for release; measuring the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.

  • Forecast: -40.00B 
  • Previous: -40.10B 

A higher than expected reading should be taken as positive for the USD, while a lower than expected reading should be taken as negative for the USD.

From the U.S. as well, the Factory Orders announcement measures the change in the total value of new purchase orders placed with manufacturers. The report also includes a revision of the Durable Goods Orders data released about a week earlier as well as new data on non-durable goods orders.

  • Forecast: -0.6% 
  • Previous: -10.1% 

A higher than expected reading should be taken as positive for the USD, while a lower than expected reading should be taken as negative for the USD.

As for New Zealand, a couple of high impact reports will be released today, including the Employment Change announcement, which measures the change in the number of employed people. Job creation is an important indicator of consumer spending.

  • Forecast: 0.6% 
  • Previous: 0.4% 

A higher than expected reading should be taken as positive for the NZD, while a lower than expected reading should be taken as negative for the NZD.

We wish you luck in your trading activities. For any further assistance, please do not hesitate to contact us at [email protected] at the Research & Analysis Department.

FOREX trading is not suitable for everyone, as it contains a high risk of losing your investment. This article shall not be handled as a recommendation as it’s to assist our readers in better understanding the market movements. 

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