EUR/USD took advantage of the revision upward of the PMI services-european
Investing.com – The EUR/USD pair is trying to bounce back on Tuesday, buoyed by good surprises on the PMI indices of services end of the month of march in Europe, but still has a long way to go before you cancel the bearish trend of the background, which always dominates.
Index PMI services of Germany has thus stood at 55.4 points against 54.9 in the first estimates. For the whole of the euro zone, PMI services was also revised up to 53.3 versus 52.7 in preliminary data.
In this context, the EUR/USD pair rose to a peak at 1.1240, but the rebound remains fragile, and the reasons to remain cautious many.
Several key statistics are expected by the end of the week, with in apotheosis the report to the NFP on Friday, particularly expected after the figures exceptionally bad of the previous month.
Today, traders will also refer to the ADP report, to 14: 15, which will give an idea of the job market in US in the month of march and to refine the expectations for the report NFP this Friday.
The trade war China-USA could also back on the front of the stage on Wednesday, while the deputy prime minister chinese Liu He went to Washington, and that the Financial Times said yesterday evening that the first two economic powers of the world are close to an agreement.
The Brexit, and especially its impact on the GBP/USD, will also be monitored today, in view of their possible influence on the trade.
Next to economic calendar, the ADP report (AP:ADP) quoted above will not be the only statistic to monitor in the United States, as will also the service PMI at 15: 45, shortly before the ISM services, at 16h.
From a graphical point of view, the rally above 1.12, as of yesterday evening is not enough to question the bearish view immediate.
Therefore, the gains of EUR/USD from the low of 1.1185 of yesterday afternoon, could offer a sales opportunity to a return-on-1,12, and possibly 1,1185 then 1,1175, the low of this year, in a first time.
This scenario is bearish will lose credibility if the EUR/USD pair manages to climb back above 1,1250, but this is just above the 1.13 that we may wish to consider a long-term increase and potential buying opportunities.