Key Highlights
- The Euro made a nice upside move and is placed well above the 1.1840 support against the US Dollar.
- There is a key bullish trend line forming with support at 1.1850 on the 4-hours chart of EUR/USD.
- The US ISM Manufacturing Index declined from the last reading of 58.7 to 58.2 in Nov 2017.
- Today, the US Factory Orders figure for Oct 2017 will be released, which is forecasted to increase by 0.6% (MoM).
EURUSD Technical Analysis
The Euro mostly traded with a positive bias above 1.1800 this past week against the US Dollar. The EUR/USD pair is now above 1.1850 and remains in an uptrend.
The pair started a downside correction from the 1.1940 swing high and traded well below the 1.1900 level recently. It has breached the 50% Fib retracement level of the last wave from the 1.1808 low to 1.1940 high.
However, there is a key bullish trend line forming with support at 1.1850 on the 4-hours chart. Moreover, the 61.8% Fib retracement level of the last wave from the 1.1808 low to 1.1940 high near 1.1859 is also acting as a support.
Overall, as long as the pair is above the 1.1840-1.1850 support levels, it remains in the bullish zone in the near term.
US ISM Manufacturing Index
Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for Nov 2017 was released. The market was looking for a decline from the last reading of 58.7 to 58.4.
However, the actual result was a bit on the lower side since there was a decline in the index from 58.7 to 58.2. Looking at the New Orders Index, there was an increase of 0.6% from the last reading of 63.4 to 64.0.
Moreover, the Production Index posted a solid increase of 2.9% from 61.0 to 63.9, and the Employment Index posted a decline of 0.1% from 59.8 to 59.7.
Overall, the result was positive and pushed the EUR/USD pair down from 1.1900. However, losses remain limited by the 1.1850 support area.
