© Reuters. EUR/USD jumped up following the ISM manufacturing US very disappointing
Investing.com – The EUR/USD pair bounces back sharply and tries again to cross the psychological threshold of 1.14 following the publication of the ISM manufacturing index in the US for the month of December which proved to be very disappointing.
It is, in fact, stood at 54.1 points against 57.7 in advance and 59.3 above, the lowest since December of 2016.
In the Face of these numbers, the Dollar immediately dropped, causing a rebound of the pair EUR/USD on a summit to 1.1404 at the moment.
Note that the ADP report released earlier this afternoon at 14: 15 was very strong, with 271k jobs for December against 179k expected, which had been ignored by the market with a reaction that is very limited in the greenback.
Traders seem to be, therefore, more inclined to react to the new, downward as the positive news regarding the US Dollar.
From a graphical point of view, the EUR/USD pair has yet to confirm its increase in the crossing of moving averages 100 and 200 hours located at 1.1413 and 1.1410, otherwise the rebound this afternoon could in the end be no more than a sales opportunity.
Above the thresholds mentioned above, the next resistance potential is 1.1435, and then 1.15.
The lower, the old support-resistance 1.1350 and the lows of the day at 1.1337 form a first support zone, before the psychological level of 1.1300-05.
Finally, it should be borne in mind that the day of tomorrow will be very busy in regards to the statistics potentially influential on the Euro-Dollar, with the PMI indexes of european services and the CPI, preliminary Euro-Zone in the morning, and then with the report to the NFP on job creation, US in the month of December and a speech by Jerome Powell, the boss of the Fed in the afternoon.
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