The EURUSD pair was testing the 1.10 threshold to the upside during the Thursday’s Frankfurt session and it was seen 0.20% higher on the day.
Earlier in the session, German services PMI for May rose sharply 31.4 from 16.2 in April, while the manufacturing sector improved to 36.8 from 34.5 previously. Moreover, the Eurozone’s services PMIs surged to 28.7 from 12.0 previously, whilst the manufacturing rose from 33.4 to 39.5. It looks like the EU economies could have a speedy recovery once the outbreak dissipates.
Later in the day, the US initial jobless claims are expected to come out 2.4 million, down from 2.9 million in the last week. This might be another positive news that the worst is over for the US economy.
Moreover, the US manufacturing PMI for May is seen rising to 38.0 from 36.1 in April, while services are forecast to improve as well. Analysts see a rise to 30.0 from 26.7 previously.
The EURUSD pair is now testing the psychological level of 1.10, which is a crucial resistance. Additionally, the 200-day moving average is located just 15-20 pips above this threshold. Thus, traders might be selling at 1.10 with the stop-loss above 1.1020. However, if the pair jumps above 1.1020, these stop-losses will be hit, which might push the pair further higher, targeting 1.1050 in the initial reaction.
Alternatively, the support is now seen near 1.0950, where the short-term uptrend line is located. Afterward, the pair could decline toward 1.09
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.