Euro Spikes on Surprising Services PMI Figures – What’s Next?
Arslan Butt • 1 min read
What’s up, fellas.
The single currency Euro is showing dramatic jumps against the US dollar on a series of positive economic events. Here’s what’s going on:
Spanish Services PMI – Spain’s service sector continued to expand at a solid rate during February, with growth supported by another marked gain in levels of incoming new business. The numbers rose to 54.5 vs. 54.2 forecast.
Italian Services PMI – Business activity among Italian service providers increased slightly during February, although new orders slipped into negative territory for the first time in four years as both domestic and international demand deteriorated in February. Good thing is, the services PMI crossed above the minimum 50 threshold today, boosting investor’s confidence in Euro.
French Final Services PMI – The French final PMI also jumped to 50.2 vs. 49.8 beforehand.
EUR/USD – Hourly Chart
As we can see on the EUR/USD chart, the pair is trading below a bullish trendline resistance of $1.1350. Despite the positive economic events, EUR/USD will face a hard time breaking above $1.1350. While support stays at $1.1285
I will consider staying bearish below $1.1350 today with a 30 pips stop loss on the upside and 60 pips take profit on the lower side.