All eyes are on the Purchasing Managers' Index as the EURUSD declines after reaching the highest exchange rate of 1.09161 during the month of June. The PMI, which is due to be released later today, is expected to shed light on the economic health of France, Germany, the UK, and the USA. Traders are expected to closely monitor this currency pair in anticipation of the release of significant economic data that could potentially impact currency valuations.
Overview
All eyes are on the Purchasing Managers' Index as the EURUSD declines after reaching the highest exchange rate of 1.09161 during the month of June. The PMI, which is due to be released later today, is expected to shed light on the economic health of France, Germany, the UK, and the USA. Traders are expected to closely monitor this currency pair in anticipation of the release of significant economic data that could potentially impact currency valuations.
High Impact Economic Events
Friday 06:00 am (GMT+0): Retail Sales m/m (GBP)
Friday 07:15 am (GMT+0): French Flash Manufacturing PMI (EUR)
Friday 07:15 am (GMT+0): French Flash Services PMI (EUR)
Friday 07:30 am (GMT+0): German Flash Manufacturing PMI (EUR)
Friday 07:30 am (GMT+0): German Flash Services PMI (EUR)
Friday 08:30 am (GMT+0): Flash Manufacturing PMI (GBP)
Friday 08:30 am (GMT+0): Flash Services PMI (GBP)
Friday 01:45 pm (GMT+0): Flash Manufacturing PMI (USD)
Friday 01:45 pm (GMT+0): Flash Services PMI (USD)
Technical Analysis
After reaching its highest price during June, the EURUSD pair has been declining, as evidenced by a series of lower highs and lower lows. Moreover, the formation of a bearish reversal, known in technical analysis as a non-failure swing, paved the way for lower exchange rates between the Euro and the US Dollar. Both the 50-period Exponential Moving Average (EMA) and the Momentum oscillator support the bearish outlook. Specifically, prices are below the 50-period EMA, and the Momentum oscillator registers values below the 100 baseline.
Potential Upside Targets
If the bulls manage to take control of the EURUSD market, traders may consider the following three potential upside targets:
1.07782: The initial upside target is 1.07782, aligning with the trough of the non-failure marked on May 30.
1.08523: The second price objective is 1.08523, representing the peak formed on June 12.
1.09161: The third upside target is 1.09161, which corresponds to the highest price reached during the month of June.
Potential Downside Targets
If the bears manage to maintain the control of the market, traders may find potential opportunities in the following three downside targets:
1.07095: The initial support level is 1.07095, corresponding to the 161.8 percent Fibonacci Extension drawn from the trough at 1.07882 to the trough of 1.09161.
1.06010: The second price objective is 1.06010, aligning with the trough marked on April 16.
1.05571: The third potential downside target is estimated at 1.05571, representing the S2 support level of the weekly Pivot Points.
Conclusion
While the EURUSD has been declining since June 4, traders' attention is drawn to the release of the Purchasing Managers' Index, which is about to reveal insights into the purchasing managers' view regarding the economic health of France, Germany, the UK, and the USA. The report is expected to shed light on the future direction of the EURUSD. As such, traders are expected to pay close attention to it to manage risks and optimize potential profit.