The Euro rebounds from new lows annual
Investing.com – After scoring a new low-on-year, largely due to the european statistics were disappointing released this morning, and minutes dovish tone of the ECB, the EUR/USD pair has displayed this afternoon a strong rebound, with now the gains on the day.
Several factors explain this sudden rally : First, after 10 days of trend sharply downward, the annual summit exceeded low on Thursday was seen as a great target for the sellers.
Profit-taking on short positions , therefore, are without doubt at the origin of the rebound, but weakness in the Dollar has also strengthened the gains of the EUR/USD.
The Dollar has indeed been as the Euro this morning affected by the statistics largely disappointing.
The PMI manufacturing index early in the month of may is, in fact, stood at 50.6 points versus 52.5 expected, while the PMI services posted a fall surprise to 50.9 compared with 53 previously, while the consensus had expected a rise to 53.2.
Sales of new homes have also proven to be disappointing, to -6.9% for the month of April compared to -2.8% in advance.
From a graphical point of view, the increase in the day allows the pair EUR/USD to test the moving average 100 hours and the line of the downward trend visible since the 13th of may for the third time in three days, but nothing indicates that the pair may reach this time to stay above these thresholds.
In case of further rise, we will also focus on the threshold of 1.1185, which corresponds to the retracement of 50% of the decline between the peak of the on may 13 and the new lower annual today.
However, only a return back above 1.12 would weaken actually the bearish view that dominates on the background of a graphic point of view.
