We spent the past week in consolidation for EURUSD with a lack of catalyst preventing a further sell-off or a recovery back above the breakout point. Ahead we will be seeing flash manufacturing and services PMI figure for both the US and Eurozone. While not big shakers in and of themselves a divergence in the results could be the catalyst to break the impasse between bulls and bears. Strong European and weak US numbers to see us back above the breakout point, weak European and strong US numbers to test the floor.
Resistance
- 1.07247/388 – Moderate: April 02 low / 20D Moving Average
- 1.06948 – Strong: Swing Low From Feb 14 (breakout point)
- 1.06713 – Minor: Monday High
Support
- 1.06239 – Minor: Monday’s Low
- 1.06016 – Moderate: Consolidation Floor
- 1.05000 – Moderate: Psychological Support
The daily consolidation for EURUSD actually forms a double or multiple bottom in the lower time frames with higher lows evident. Given the data today we would prefer remaining sidelined until their release though we favor looking for shorts off 1.06948 if things turnout as expected. It would take a very weak US number for us to jump the double bottom if triggered.
