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Forex Market: EUR/USD daily forecast

During Friday’s trading session EUR/USD traded within the range of 1.3564-1.3634 and closed at 1.3600.

At 6:49 GMT today EUR/USD was adding 0.06% for the day to trade at 1.3607. The pair touched a daily high at 1.3614 at 6:10 GMT.

Fundamental view

The preliminary reading of Germany’s manufacturing PMI probably advanced to 52.5 in June, from a final reading of 52.3 in the previous month. The official reading is to be released at 7:30 GMT.

At the same time, the preliminary manufacturing (PMI) in the Euro zone probably remained unchanged at 52.2 this month, matching Mays final reading, 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.

In addition, the preliminary reading of Germany’s Services PMI in June probably slowed down to 55.7 this month, from 56.0 in May. The official reading is to be released at 7:30 GMT.

The preliminary reading of Euro zone’s Services PMI probably improved to 53.3 in June, from 53.2 in the preceding month. Markit Economics will report the official value at 8:00 GMT.

In case market expectations are exceeded, this will boost demand for the single currency.

Technical view

Screenshot from 2014-06-23 09:52:51

According to Binary Tribune’s daily analysis, in case EUR/USD manages to breach the first resistance level at 1.3635, it will probably continue up to test 1.3669. In case the second key resistance is broken, the pair will probably attempt to advance to 1.3705.

If EUR/USD manages to breach the first key support at 1.3565, it will probably continue to slide and test 1.3529. With this second key support broken, the movement to the downside will probably continue to 1.3495.

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