EUR/USD Maintains an Upside Trend Despite Disappointing French PMI

Tradervox.com (Dublin) - French manufacturing PMI was expected to jump over the critical 50 point mark and reach 50.3 points in October (from 49,8 in September). The 50 point mark separates growth and contraction. However, it disappointed with a drop to 49.4 points. Services PMI was predicted to edge up from 51 to 51.2 points. Also here, the score dropped to 50.2 points, hardly holding on in growth territory. Spain’s unemployment rate was predicted to slide from 26.3% to 26.1% and the actual result was 26% in Q3.

EUR/USD continue to maintain medium term upside bias on EUR despite its pullback threats. Minimum resistance resides at the 1.3710 level, its Feb 01’2013 high.

Further out, resistance comes in at the 1.3750 level followed by the 1.3800 level and possibly higher towards the 1.3850 level. Its daily RSI is bullish and pointing higher supporting this view.

Conversely, support stands at the 1.3600 level where a breach will target the 1.3500 level followed by the 1.3456 level and then the 1.3321 level.

A cut through here will target the 1.3250 level. All in all, EUR continues to retain its upside bias in the medium term.

EUR/USD was already on a roll before the publication, climbing above the round 1.38 line and peaking at 1.3821.The French release weighed on the pair, but it holds above 1.38, at least for now.

Markit releases German PMIs soon. The all-European numbers follow. France is the second largest economy in the euro-zone (and in Europe) after Germany. Spain is ranked fourth in the euro-zone, after Italy. Yesterday, the Bank of Spain estimated a growth rate of 0.1% in Q3, ending the recent round of recession.

One of the factors pushing the euro higher is an improved global sentiment following the release of the Markit / HSBC Flash PMI for China. It rose to 50.9 points and sidelined fears about global growth. The risk on environment helps the common currency.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

 

Note: Investments in financial products are subject to market risk.  Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. 

Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. Tradervox.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by Tradervox.com.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice.

Tradervox.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.

Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

By accessing this website, you accept our Terms and Conditions