EUR/USD: Door opened to more falls – Elam

The gloom in the European economy and the surprisingly positive ISM Manufacturing data in the United States paint a red way for the Euro. Technical indicators are mixed, FXStreet’s analyst Yohay Elam informs.

Key quotes

“The eurozone's economic malaise of low growth and a struggling manufacturing sector is well known, and it looks worse amid the bounce in the US industry.”

“The ISM Manufacturing Purchasing Managers' Index hit 50.9 in January – a leap of over three points and returning to growth. ISM's upbeat figures, which included a jump in the forward-looking New Orders component, gave a boost to the dollar.”

“While stock markets are back to relative calm, the worrying news about coronavirus is underpinning the safe-haven US dollar”

“EUR/USD has fallen back below the 100 Simple Moving Average on the four-hour chart after failing to reach the 200 SMA. However, it trades above the 50 SMA and enjoys upside momentum. All in all, the picture is mixed.” 

"Support awaits at 1.1035 whereas resistance is at 1.1065”