How to trade EURUSD ahead of European Manufacturing PMI release

Table of Contents

Euro (EUR) rose against the U.S. Dollar (USD) during the week ending on May 21, 2021, increasing the price of the EURUSD pair to more than 1.2200, ahead of the release of the European Manufacturing PMI news

Technical Analysis 

As of this writing, the EURUSD pair affirms around 1.2230. On the upside, the pair might face some hurdles near the listed price levels.

Short-Term Resistance 

1.2320 – the upper trendline arm

1.2400 – the psychological level 

1.2476 – the high of March 25, 2018

Image Source – MetaTrader4
Image Source – MetaTrader4  

On the downside, the price of the pair might find some support near the given below price levels. 

Short-Term Support

1.2161 – the low of May 20, 2021

1.2100 – the psychological number

1.2026 – the major horizontal support 

European Market Manufacturing PMI News

Markit Economics, Europe is all set to release numbers for the Market Manufacturing Purchase Manager Index (PMI) Today (May 21, 2021). FXStreet.com economists expect that the European Market Manufacturing PMI news might register a reading of 65.9 in May, as compared to the reading of 66.2, in the month before. 

Stats for the market manufacturing PMI reflect the business conditions of the manufacturing sector across Europe. The manufacturing sector contributes significantly to the total GDP, therefore, it is considered to be a crucial economic indicator. Numbers above 50 strengthen Euro (EUR) and suggest a bullish trend for the EURUSD pair and vice versa. 

Conclusion 

Considering the price movements of the pair over the past few days, it may be a better option in the short term if the pair was bought around 1.2161. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.

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