EURUSD breaks short-term uptrend

USD pushes higher off favorable economic data.

Charts (1)

On the U.S. economic data front, Markit's U.S. Manufacturing Purchasing Managers' Index came in at 50.9 for the July final reading which was slightly below the 51.3 estimate. ISM manufacturing jumped to 54.2 in June from 52.6 in May, above the 53.6 expected and at its highest level since March 2019. Finally, Construction Spending for June declined 0.7% on month (1% increase estimate) compared to a decline of 2.1% in May.     

On Tuesday, U.S. Manufacturing Orders are anticipated to increase by 5% for June compared to a gain of 8% in May. June Durable good orders are expected to gain 7.3% in-line with May.  

The Euro was mixed against most of its major pairs, lower against the USD, GBP, and CAD. In Europe, the July Markit Eurozone Manufacturing Purchasing Managers' Index was reported at 51.8, vs 51.1 expected. Also, Markit Manufacturing PMIs were released for Germany at 51.0 (vs 50.0 expected), for the U. K. at 53.3 (vs 53.6 expected), and for France at 52.4 (vs 52.0 expected).

Looking at the EURUSD currency pair on an hourly chart, prices broke below a short-term rising trend line in place since Aug 27th. The 20-period moving average is acting as resistance on the decline. As long as key resistance at 1.1795 is not broken to the upside, look for continued bearish momentum down towards 1.1695  and 1.1655 support levels.

Source: GAIN Capital, TradingView

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.