Forecast on the currency pair EUR / USD

Today we will take a look at the EUR / USD currency pair. Many countries in the Eurozone today will provide reports on changes in the level of business activity in the manufacturing sector, as well as the services sector. Numbers above expectations should strengthen EUR. I draw your attention to the fact that the actual data from France beat analysts’ expectations thereby supporting EUR.

Trading look:

The main scenario.

A break of the 1.0990 resistance level will increase the risk of further growth to 1.1050 and further to 1.1145. This scenario will be possible with a substantial improvement in the PMI indices for Germany and the eurozone as a whole.

Alternative scenario.

The bullish scenario will be cancelled with a pull back of the currency pair to the level of 1.0950. This scenario may be implemented if PMI figures come in under analysts’ expectations, which is unlikely given the optimistic prediction for France.

It is also important to pay attention on reports from the USA. The Publication time is conveniently tracked in the economic calendar.

The above review is not a direct guide to action, but carries an exclusively recommendatory nature.