Forex Market: EUR/USD daily forecast

During Friday’s trading session EUR/USD traded within the range of 1.3598-1.3650 and closed at 1.3634.

At 6:54 GMT today EUR/USD was losing 0.01% for the day to trade at 1.3633. The pair touched a daily low at 1.3620 at 00:30 GMT.

Fundamental view

Euro zone

The final manufacturing Purchasing Managers’ Index (PMI) in the Euro zone probably remained unchanged at 52.5 in May, matching the preliminary reading estimated on May 22, according to the median forecast by experts.

The index is based on a monthly survey, which includes carefully selected companies that are representative of the state of the private sector in the economy and track the changes in production, new orders, market share, employment and prices in the manufacturing sector. The PMI is the first economic indicator for each month, providing information on the changing economic conditions, significantly earlier than the official state statistics. It is presented as a scale from 1 to 100. Readings above 50 are connected with a positive outlook for economic growth. Conversely, values ​​below 50 indicate a less optimistic forecast. This is a preliminary value of the indicator.

The research group Markit Economics will release the official figures at 8:00 GMT.

United States

At 14:00 GMT the Institute for Supply Management (ISM) is to report on manufacturing activity in the country. According to experts’ estimates, the gauge of manufacturing probably increased to 55.4 last month from 54.9 in April. Values above 50.0 signify increased activity. In case market expectations are exceeded, the US dollar will receive support.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/USD manages to breach the first resistance level at 1.3657, it will probably continue up to test 1.3679. In case the second key resistance is broken, the pair will probably attempt to advance to 1.3709.

If EUR/USD manages to breach the first key support at 1.3605, it will probably continue to slide and test 1.3575. With this second key support broken, the movement to the downside will probably continue to 1.3553.