24 Mar 2015
EUR/USD testing 1.10 on upbeat German data
FXStreet (Mumbai) - EUR/USD rallied to fresh session highs beyond 1.0995 levels in the mid-European session, as the shared currency was boosted against the US dollar after the German manufacturing and services gauges rose above estimates in March.
EUR/USD rises from 1.0970 levels post data
The EUR/USD now rose 0.39% at fresh session highs of 1.0989levels, heading towards 1.10 handle. EUR/USD jumped to fresh highs after impressive German PMI readings, confirmed a modest recovery is taking shape in Europe's number one economy, supported by the softer euro, lower oil prices and the QE program recently kicked off by the European Central Bank (ECB), boosted the shared currency across the board.
Markit's PMI for the manufacturing sector, which accounts for about a fifth of the nation's economy, rose to 52.4 during March from 51.1 seen in February. Market had expected a 51.5 result. Meanwhile, output growth in the services sector picked up again with the respective gauge booking 55.3 in March, compared to the 54.7 seen in February, remaining in expansion territory.
Moreover, resumption of US dollar downslide also adds to the uptrend in the EUR/USD. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies fell to 96.86, recording a- 0.34% loss on the day.
While traders now switch their focus on EMU manufacturing and services PMIs with expectations of a slight improvement, which is expected to play in favour of the shared currency.
Meanwhile, US CPI data will also draw all the attention coupled with Greek Prime Minister Tsipras visit to Berlin, which definitely puts volatility into headline risk.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1033 (March 18 High) levels, above which gains could be extended to 1.11 levels. On the flip side, support is seen at 1.0904 (Today’s Low) levels, below which it could extend losses to 1.0850 levels.
EUR/USD rises from 1.0970 levels post data
The EUR/USD now rose 0.39% at fresh session highs of 1.0989levels, heading towards 1.10 handle. EUR/USD jumped to fresh highs after impressive German PMI readings, confirmed a modest recovery is taking shape in Europe's number one economy, supported by the softer euro, lower oil prices and the QE program recently kicked off by the European Central Bank (ECB), boosted the shared currency across the board.
Markit's PMI for the manufacturing sector, which accounts for about a fifth of the nation's economy, rose to 52.4 during March from 51.1 seen in February. Market had expected a 51.5 result. Meanwhile, output growth in the services sector picked up again with the respective gauge booking 55.3 in March, compared to the 54.7 seen in February, remaining in expansion territory.
Moreover, resumption of US dollar downslide also adds to the uptrend in the EUR/USD. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies fell to 96.86, recording a- 0.34% loss on the day.
While traders now switch their focus on EMU manufacturing and services PMIs with expectations of a slight improvement, which is expected to play in favour of the shared currency.
Meanwhile, US CPI data will also draw all the attention coupled with Greek Prime Minister Tsipras visit to Berlin, which definitely puts volatility into headline risk.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1033 (March 18 High) levels, above which gains could be extended to 1.11 levels. On the flip side, support is seen at 1.0904 (Today’s Low) levels, below which it could extend losses to 1.0850 levels.