Eurozone Flash PMI figures were not exactly all great as the Manufacturing sector signals a deepening of its contraction coming in at 45.6 from 46.1 while Services surprised on the upside to read 52.9. Considering that both sides were a disappointment in the US Flash Manufacturing PMI 49.9 against a 52 consensus forecast and Flash Services PMI at 50.9 against expectations of 52. The divergence in the Services sector reads were enough for us to see the EURUSD double bottom triggered with little in the way of a key event to worry about today.
Resistance
- 1.07914 – Minor: Double Top Trigger
- 1.07580 – Minor: Intraday Consolidation Resistance
- 1.07255/355 – Moderate: Previous Breakout Point / 20D Moving Average
Support
- 1.06901 – Minor: Double Bottom Trigger
- 1.06611 – Minor: Intraday Consolidation Resistance
- 1.06385 – Minor: Tuesday Low
Euro’s break of a double bottom is encountering immediate resistance at the previous point of collapse at 1.07255. Pushing overbought in the daily oscillators ahead of daily level resistances we would look for an hourly consolidation under the resistances before considering selling if long wicks were to appear or bearish divergences develop. Otherwise the upside appears to be very limited from where market is at to still join. A push and an hourly close above 1.07255/355 Breakout Point / 20D Moving Average could be seen as a bullish entry on the proviso of a new catalyst to drive the market.
