- Major European currencies fall against the dollar on Friday.
- PMI of the Eurozone exceeds expectations, it is the turn of the US.
- EUR / USD targeting 1.1750 / 60, weekly low and key support.
The EUR / USD is falling modestly on Friday, moving in a limited range. The pair hit a low for the day at 1.1759, having previously risen to 1.1786, all in the European session. Better-than-expected data from the Eurozone had no lasting impact on the euro.
The short-term tone continues to point lower in EUR / USD, with an eye toward support at the 1.1750 / 60 band. The break in that zone should intensify the bearish tone, favoring more falls. To the upside, the first resistance can be seen at 1.1785 / 90, then 1.1805, before 1.1830. If this last level is exceeded, the euro will be strengthened.
Without lifting despite data
Overall, July preliminary Eurozone PMI data was above expectations. Services rose to 60.4 and manufacturing fell modestly to 62.6. In Germany, the manufacturing reading was 65.6 (consensus: 64.2) and that of services 62.2 (59.1). Francio was the negative surprise by registering declines in manufacturing to 58.1 (58.4) and in services to 57 (58.7).
On Thursday, after the monetary policy meeting, the European Central Bank maintained the reference interest rate and warned that it will continue to support low interest rates for a long period of time. The central bank warned about the emergence of new cases of coronavirus and its economic impact due to the restrictions.
In the US, the only data that reflects the economic calendar is the PMI estimate. A reading of 62 is expected for manufacturing and 62 for services.
Technical levels
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