EURUSD Forecast: Key Levels Ahead of PMI Day

PMI Expectations
DXY vs EURUSD

PMI Expectations

The flash manufacturing and services PMI are expected to align in favor of the EURUSD trend tomorrow. The French, German, and European metrics are projected to increase, indicating expansion, while the US PMI is expected to decrease from previous levels.

In reference to the usual effects of this indicator, high volatility can be expected on the EURUSD charts, and technical analysis can define the way:

EURUSD Forecast: DXY – Daily Time Frame – Logarithmic Scale

As long as the DXY proceeds with its trend within the borders of the yearly up trending channel, bearish pressures will be applied on the EURUSD chart. In reference to the latest EURUSD article, the latest 105.40 high set the ceiling for the dollar’s uptrend as the 1.0660 set the ground for the EURUSD’s drop.

What’s Next?

For the DXY, a break above the 105.40 is needed to confirm the further uptrends towards the mid channel zone near the 106 and 1.07 resistance zones respectively. Current indecision can be implied from the DXY’s movement, and a drop below the channel can still be a valid scenario, with a possible support near 103.70, which could shift the overall sentiment.

Translating the analysis onto the EURUSD Chart

EURUSD Forecast: EURUSD – Daily Time Frame – Logarithmic Scale

The EURUSD has respected the previous resistance level connecting the highs of March, April, and May consecutively, as is rebounded from its upper border on Friday and proceeded to the 1.0761 high.

Proceeding from the current drop to the 1.0712 low, which marks the 50% Fibonacci retracement level of the move between the 1.0667 low and the 1.0761 high, a rebound back above 1.0740 and 1.0760 is expected to challenge the 1.0770 and 1.08 resistance zones respectively.

On the downside, breaking below the 1.07, the first support lies near the 1.0680 low. Further declines could drive the EURUSD towards 1.0640 and 1.06, respectively.

The sentiment towards the upcoming PCE data, the Fed’s favored inflation gauge, is set to impact the trends of the DXY and the EURUSD next.

--- Written by Razan Hilal, CMT

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.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX 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), StoneX Financial 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 StoneX Financial 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 StoneX Financial 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.

StoneX Financial 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 www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.