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Despite Downbeat Germany IFO - EUR/USD Above 1.13000 Mark! 

EagleFX

The EUR/USD currency pair took better bids and rose to an intra-day high above 1.1300 level, mainly due to the risk-on market sentiment triggered by the upbeat key data from the U.S. and China. On the other hand, the currency pair did not give any major attention to the recently released downbeat German Factory Orders data. In the meantime, the reason for the currency pair bullish bias could also be attributed to the broad-based U.S. dollar weakness in the wake of risk-on market sentiment. At this particular time, the EUR/USD currency pair is currently trading at 1.1301 and consolidating in the range between 1.1243 and 1.1302.

While introducing the Factory orders, this data is normally released by the Deutsche Bundesbank, which is an indicator of production; rising purchases orders signal manufacturers to increase activity as they work to fill the order. A surge in the factory order total may reflect an extension in the German economy and could be an inflationary part. It is worth noting that the German Factory (positive or negative) hardly affects the total Eurozone GDP. Whereas the high reading is seen as positive (or bullish) for the shared currency, likewise, the low figure is seen as negative.

However, the reason for the market's upbeat performance could be attributed to the upbeat employment data from the U.S. and China's services PMI numbers. Let me remind you; the American traders failed to take benefit properly from June month's employment data before going on the Independence Day holiday.

Looking ahead, the market traders will keep their eyes on the June month's US ISM Non-Manufacturing PMI, expected 49.5 against 45.4 prior. This data could negatively affect the precious metal prices if it came in above 50.00 marks. However, the market would be more active today as U.S. traders return to the desk after a long week comprising Friday's Independence Day holiday.


Daily Support and Resistance

S1 1.1097

S2 1.1176

S3 1.1209

Pivot Point 1.1256

R1 1.1289

R2 1.1335

R3 1.1415

The direct currency pair EUR/USD has violated the descending triangle pattern, leading the pair towards the resistance level of 1.1340 level. Above this level, the pair has the potential to go further higher until the 1.1390 level. On the 4 hour chart, the EUR/USD has violated the downward trendline line at 1.1289 level, and the bullish engulfing candle is supporting buying in the pair. Since it's too late to enter bullish trade now, we should wait for a bearish retracement until 1.1300/1.1289 levels before taking additional buying trades today. Good luck!

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