UK Manufacturing and Services PMI
After hitting a high of $1.1751 and a low of $1.1691, the EUR/USD was closed at $1.1743. On Monday, amid recent weakness in the US dollar due to weaker-than-expected macroeconomic data, EUR/USD reversed direction and began rising.
After the market's risk sentiment improved, the selling pressure on the US dollar increased. On Monday, the US Dollar Index, which measures the value of the dollar against a basket of six major currencies, dipped to 92.9, adding to the rising price of the EUR/USD currency pair.
On the data front, the French Flash Manufacturing PMI stayed unchanged at 12:15 GMT, with forecasts of 57.3 for August. The French Flash Services PMI maintained at 56.4, which was in line with expectations. The German Flash Manufacturing PMI fell to 62.7 in August, vs a forecast of 65.1, weighing on the single currency Euro, which capped advances in EUR/USD. The German Flash Services PMI rose to 61.5 in August, beating expectations of 61.0, and bolstered the Euro, pushing EUR/USD higher.
The Flash Manufacturing PMI fell to 61.5 in August, vs a forecast of 62.0, weighing on the single currency Euro, which capped advances in EUR/USD. The Flash Services PMI remained at 59.7, which was expected. At 18:33 GMT, August Consumer Confidence was unchanged from the expectation of -5.
The Flash Manufacturing PMI dipped to 61.2 in August, vs a forecast of 62.4, weighing on the US dollar and adding to advances in the EUR/USD currency pair at 18:45 GMT. In August, the Flash Services PMI fell to 55.2 from 59.1 expected, weighing on the US dollar and pushing EUR/USD higher. At 19:00 GMT, Existing Home Sales increased to 5.99 million, versus a forecast of 5.82 million, bolstering the US dollar and accelerating the surge in EUR/USD.
Meanwhile, when Pfizer and BioNTech's vaccine obtained complete approval from the US FDA on Monday. Therefore, the market mood brightened slightly. After a trial of 40,000 participants demonstrated that the vaccination delivers 91 percent efficacy against the coronavirus, the health department decided to completely approve the vaccine for people over the age of 16. This news alleviated market concerns about rebound and boosted the riskier asset EUR/USD to a new high.
Furthermore, investors were looking forward to the Federal Reserve's Jackson Hole Symposium, which will be held online this year and will take place on Thursday. The Symposium's primary event will be Federal Reserve Chairman Jerome Powell's keynote speech on Friday, which will give the market insights about the monetary policy decisions that will be made at the September meeting.
EUR/USD Intraday Technical Levels
Pivot Point: 1.3756
EUR/USD - Technical Outlook
The EUR/USD is trading at 1.1742 with a slight bullish bias. In the 4-hour timeframe, the EUR/USD pair’s immediate support prevails at the 1.1729 level. That’s the intraday pivot point level. The EUR/USD’s immediate resistance stays at the 1.1750 level and a bullish breakout of this level exposes the pair towards 1.1766 and 1.1787 levels.
Speaking of the support, the pair may find it around the 1.1720 level and a bearish break below 1.1729 exposes the pair towards the 1.1708 level. Overall, the pair is forming a higher high and higher low pattern that supports an upward trend in the EUR/USD pair. Therefore, the buying trend dominated the market on Tuesday.
Investors’ major focus will stay on the German Final GDP q/q as this could drive price action during the European session today. All the best!
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