EUR/USD is looking at a firm break of the 200-hour moving average
And if price holds a firm break above said level, the near-term sentiment will shift back to bullish. The break here also comes at the same time as cable looks to test the 1.3300 handle after having broken above the 200-hour MA as well.
The French data here may have seen the manufacturing print disappoint, but the composite reading improved markedly and it’s something that we haven’t gotten from Eurozone data in a while. With the recent lackluster data, the market wasn’t anticipating much from the release and if German and Eurozone readings show a similar pattern it will only help to fuel the upside run further today.
The high for EUR/USD comes at 1.1672, with the 21-day MA sitting at 1.1673 so the momentum has stalled just below it. The next resistance level in the pair also sits at 1.1680 in the form of the 50.0 retracement level so the 1.1670-80 region will be a key test as well to see if buyers can hold up the momentum.
The German June PMI readings are due at the bottom of the hour, so that’s the next key risk event to watch out for.