EUR/USD remains strong above 1.1100 in the European session, showing resilience after PMI data release. Market participants closely monitor S&P Global PMI figures for further insights.
On Wednesday, EUR/USD maintained its bullish momentum, hitting its highest level since July 2023 above 1.1170. Despite a minor correction in the early European session, the pair stabilized around 1.1150.
Germany’s recent data revealed a contraction in the private sector’s economic activity in August, with the HCOB Composite PMI dropping to 48.5 from 49.1 in July. Chief Economist Dr. Cyrus de la Rubia noted a lack of expected recovery in the economy, hinting at potential interest rate cuts by the ECB to boost sentiment.
However, there was a positive development as the HCOB Composite PMI improved to 51.2 in August from 50.2 in July. Services PMI also saw a jump to 53.3, mainly driven by increased activity in France linked to the Olympic Games in Paris.
Later today, S&P Global will release preliminary Services and Manufacturing PMI data for August. Any unexpected drop in Services PMI could impact the USD’s demand, while a positive report may support the USD and limit EUR/USD’s upward movement.
EUR/USD Technical Analysis
EUR/USD is trading in the upper half of the ascending regression channel, with the RSI indicator suggesting a bullish bias. Key support levels include 1.1100, 1.1060, and 1.1030, while resistance levels are at 1.1150, 1.1170, and 1.1200.
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