EUR/USD: Euro reverses its rising in the morning, but retains some support

© Reuters. EUR/USD set aside its rise in morning

After greeting the beginning of the year 2019 by a rally to the upside which has given rise to a summit at 1.1496 this morning, the pair EUR/USD corrects on Wednesday, with a low daily 1.1428 for the moment.

The downward revision to the PMI manufacturing Spanish (52.4 to 51.1) at 9: 15 am has been the biggest factor weighing on the Euro, causing investors to fear that these disappointing figures are confirmed for the Euro Area as a whole, which is ultimately not realized, since the German index came in at 51.5 points, as expected, while that of the Euro Zone is displayed at 51.4 points, also as expected.

EUR/USD however, does not seem ready to bounce to much for the moment, with a downward pressure that remains strong.

From a graphical point of view, several elements, however, continue to support the EUR/USD pair and limit its potential downside immediate.

We note, in particular, an upward trend line visible in the hourly data since 26 December, as well as moving averages of 100 and 200 hours, respectively, at 1.1420 and 1.1412, just before the psychological threshold of 1.14, which is also considered as a major support.

In 1.14, the profile of the Euro-Dollar would become more bearish and a further movement below this level would put the next support at 1.1350 and 1.13 in the line of sight.

The increase, 1.1470-1.15 should be regarded as the first resistance zone is credible, which will be probably difficult to overcome without a concrete catalyst in the news.

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