Key EUR/USD Levels For Thursday
Rowan Crosby • 1 min read
The EUR/USD is continuing to hold around the 1.1300 level as we head into the long weekend across the globe.
Despite the 1.1300 level being a bit of a magnet this week, the EUR/USD might very well be facing the most important data point today by way of German Manufacturing PMI.
Despite a recent rally in the DAX Index, markets are bracing for a soft manufacturing number here on the back of worldwide trade worries and issues around auto exports.
Yesterday, we saw Eurozone inflation meet expectations at 1.4%, but that is still a very soft number in the context of ECB expectations.
So we will really be on watch to the downside here today.
The reality is that despite the recent bounce to 1.1300, there is still plenty of pressure on the Euro to the downside.
If 1.1300 drops today then that could be the signal for more weakness ahead and a move back down to the 1.1200 lows.
A break of 1.2800 would be a lower low and that would be a bearish break for me.
That would also need the USD to regain some momentum. Of course, in recent times, it has been pulling back from the recent highs.
I’m keeping 1.1300 as support for the time being, given that we haven’t made a clear break down just yet.