EURUSD breaks short-term uptrend
Gary Christie August 4, 2020 1:07 AM
USD pushes higher off favorable economic data.
On the U.S. economic data front, Markit's U.S. Manufacturing Purchasing Managers' Index came in at 50.9 for the July final reading which was slightly below the 51.3 estimate. ISM manufacturing jumped to 54.2 in June from 52.6 in May, above the 53.6 expected and at its highest level since March 2019. Finally, Construction Spending for June declined 0.7% on month (1% increase estimate) compared to a decline of 2.1% in May.
On Tuesday, U.S. Manufacturing Orders are anticipated to increase by 5% for June compared to a gain of 8% in May. June Durable good orders are expected to gain 7.3% in-line with May.
The Euro was mixed against most of its major pairs, lower against the USD, GBP, and CAD. In Europe, the July Markit Eurozone Manufacturing Purchasing Managers' Index was reported at 51.8, vs 51.1 expected. Also, Markit Manufacturing PMIs were released for Germany at 51.0 (vs 50.0 expected), for the U. K. at 53.3 (vs 53.6 expected), and for France at 52.4 (vs 52.0 expected).
Looking at the EURUSD currency pair on an hourly chart, prices broke below a short-term rising trend line in place since Aug 27th. The 20-period moving average is acting as resistance on the decline. As long as key resistance at 1.1795 is not broken to the upside, look for continued bearish momentum down towards 1.1695 and 1.1655 support levels.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.