Feb. 19, 2021
EUR/USD rallied 27 pips and maintains at 1.2126 level.
Data out yesterday – Euro Zone CFTC EUR speculative net positions was released with a new figure of 140,000, This is down from preceding data of 140,200. The Euro Zone Manufacturing PMI beat expectations of 54.3 with the new data release of 57.7. This is also a step forward from the previous data of 54.8. The Euro Zone Services PMI fell short of the 45.9 projections, at 44.7 and continued its downward trajectory from the previous figure of 45.4.
Visual analysis of the Euro/Dollar's price graph shows the Euro/Dollar could be slowing down soon because it is getting close and is now only 182 pips from the resistance line at 1.2308, yet crossing it might suggest further gains are ahead. Asset volatility analysis shows that a slight indication of a slowdown comes from looking at the Bollinger bands: the upper band is at 1.2202 – a high enough level to usually suggest the Euro/Dollar is trading above its value. In contrast, at 1.2157, Euro made an initial breakout above the 50 day Simple Moving Average, an indication of a positive trend.
Overall, looking at the technical analysis landscape, it seems a reverse of course in the short term might be next for the Euro.
Euro social media highlights: