EUR/USD: fresh lows towards NY finish line, still bullish?
- US data upbeat
- US politics a bullish foundation for the greenback
- EUR/USD Bulls need to get up through 1.1780
EUR/USD is tracking the downside as the NY session eyes the finish line and the dollar picks up a further bid, currently at 93.97 highs in the DXY, which is heavily weighted to the euro. Currently, EUR/USD is trading at 1.1759, up 0.08% on the day, having posted a daily high at 1.1777 and low at 1.1743.
EUR: politics not in the driving seat - Nomura
The US dollar is catching a bid with the political background as a bullish foundation for the greenback in respect to the anticipation of what tax reform will mean tot he US economy and dollar. However, key US data today has also been supportive, as Valeria Bednarik, chief analysts at FXStreet pointed out:
Key US data upbeat
"The Manufacturing PMI beat expectations, up to 58.6 from final September reading of 58.1, while the Services PMI came in at 54.9, below previous and expectations. The composite figure resulted at 55.9 from previous 56.7, still strong enough to back ECB's tapering decision later this week. In the US, private sector growth accelerated to its highest in nine months, with the Manufacturing PMI reaching 54.4 and the Services PMI 55.9."
EUR/USD: to remains supported until ECB meeting? - Scotiabank
EUR/USD levels
Analysts at Scotiabank are neutral/bullish on their technical outlook:
"Last Friday’s heavy sell-off in spot stalled around 1.1730/35 and the EUR has found a modest bid from the low 1.17s so far this week to stabilize the drop. Short-term charts suggest a minor low—at least– has developed now (bullish 1– and 6-hour signals) around the low point seen through mid-month. Gains through 1.1780/85 would turn the short-term picture a little more constructive," argued the analysts.
Meanwhile, the FXStreet Technical Confluences Indicator shows that there is congestion with a mix of technical indicators between 1.1780 and 1.1813 where the weekly Fib 61.8% is located, placed just above the 10-D SMA.