Looking at the above daily EUR/USD MT 4 price action chart, the euro currency had reversed its correction lower only to fall back to earth. Overnight, the headline EUR/USD Forex market rose from last week’s low price point at 1.1870 to nearly 1.1950.
The euro then reversed course to challenge the two hundred (200) day simple moving average (SMA). The 200 day simple moving average is in play around 1.1850.
Looking at fundamentals driving the EUR/USD currency exchange rate, Germany is getting ready to extend their coronavirus lockdown. France, Italy and other euro area nations have already taken this measure as coronavirus infections spike higher again in the European Union. The Eurozone is also not happy with pharmaceutical companies for the lack of supply with a coronavirus vaccine.
Today is all about flash manufacturing and services purchasing managers’ indices (PMI). Germany and France will release monthly flash manufacturing and services purchasing managers’ indices data today as will the Eurozone.
The United Kingdom is publishing monthly consumer price index (CPI) data and their monthly flash manufacturing and services purchasing managers’ indices. The United States is also releasing monthly flash manufacturing and services PMI data.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD price action chart, the technical indicators are trending lower. A daily close below the 200 day simple moving average at 1.1850 will open the door to challenge down near 1.16. This is the 2020 September and November low price point.
With that said, there is technical support in play at 1.1845 with the next downside barrier lining up at 1.1815. Should the 200 day simple moving average at 1.1850 hold up, the first technical upside barrier to watch lines up at 1.1960.
A daily close above this level opens the door to challenge the technical layer of resistance at 1.1990 with the key round number of 1.20 then coming into play. The next upside barrier lines up at 1.2035.