The euro cross ended the previous week at the lower end of the range as the bulls have been teased at 14MA (daily) for six straight sessions. PMI readings Manufacturing, Construction, and Services were taking a hit. This week’s trading range will be cast on the UK February IP data.

Data review:

  • UK Manufacturing PMI posted at 55.1 in March, little-changed from 55.0 in February. The average reading over the opening quarter as a whole (55.1) was the weakest in a year
  • Business activity falls amid unusually bad weather in March. Construction PMI fell sharply from 51.4 in February to 47.0 in March, to register below the 50.0 no-change threshold for the first time in six months. Moreover, the latest reading signaled the fastest overall decline in construction output since July 2016
  • Weakest rise in services activity for 20 months in March, partly linked to snow disruption. Services PMI Business Activity Index dropped from 54.5 in February to 51.7 in March, to signal the weakest service sector performance since July 2016
  • Prices in the last three months to March were 2.7% higher than in the same three months a year earlier, edging up from the 1.8% annual growth recorded in February

Data preview:

 

TECHNICAL VIEW

The past six months trading behavior lack specific direction, though the cross fell below the support but finally rebounded and closed above.  Overall, the base support 0.8680 still protected and will extend the short-term rebound before a major breakdown.

Weekly pivotal is found at 0.8700/0.8680 below this 0.8640 and 0.8600 exists.

Range: 0.8600-0.8800. Status: Bullish-Neutral

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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