EURUSD Forecast: Key Levels Ahead of PMI Day

PMI Expectations
DXY vs EURUSD

PMI Expectations

The flash manufacturing and services PMI are expected to align in favor of the EURUSD trend tomorrow. The French, German, and European metrics are projected to increase, indicating expansion, while the US PMI is expected to decrease from previous levels.

In reference to the usual effects of this indicator, high volatility can be expected on the EURUSD charts, and technical analysis can define the way:

EURUSD Forecast: DXY – Daily Time Frame – Logarithmic Scale

As long as the DXY proceeds with its trend within the borders of the yearly up trending channel, bearish pressures will be applied on the EURUSD chart. In reference to the latest EURUSD article, the latest 105.40 high set the ceiling for the dollar’s uptrend as the 1.0660 set the ground for the EURUSD’s drop.

What’s Next?

For the DXY, a break above the 105.40 is needed to confirm the further uptrends towards the mid channel zone near the 106 and 1.07 resistance zones respectively. Current indecision can be implied from the DXY’s movement, and a drop below the channel can still be a valid scenario, with a possible support near 103.70, which could shift the overall sentiment.

Translating the analysis onto the EURUSD Chart

EURUSD Forecast: EURUSD – Daily Time Frame – Logarithmic Scale

The EURUSD has respected the previous resistance level connecting the highs of March, April, and May consecutively, as is rebounded from its upper border on Friday and proceeded to the 1.0761 high.

Proceeding from the current drop to the 1.0712 low, which marks the 50% Fibonacci retracement level of the move between the 1.0667 low and the 1.0761 high, a rebound back above 1.0740 and 1.0760 is expected to challenge the 1.0770 and 1.08 resistance zones respectively.

On the downside, breaking below the 1.07, the first support lies near the 1.0680 low. Further declines could drive the EURUSD towards 1.0640 and 1.06, respectively.

The sentiment towards the upcoming PCE data, the Fed’s favored inflation gauge, is set to impact the trends of the DXY and the EURUSD next.

--- Written by Razan Hilal, CMT

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.