EURUSD breaks short-term uptrend

Close-up of market chart
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

Related tags: EUR Forex USD

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