We expect two PMI index releases from Germany and France. It should be noted that both indicators show a negative trend, besides the France indicator is below 50% for four months in a row. The pair EUR/USD started a consolidation phase after the fall to the support level of 1.2780-1.2800, which holds back the bears successfully at this stage.
The support levels are 1.2780 - 1.2800, and the resistance levels are 1.2890 - 1.2910.
MACD is in a negative territory.
The attempts to increase the single currency are limited by the resistance level of 1.2890-1.3110, this level break will test the resistance level of 1.2940-1.2960. The upward correction risks are still preserved. Maybe it will happen after the level of 1.2710-1.2730 testing.
We can expect the side trends development amid the UK empty macroeconomic calendar. Macroeconomic Research Center “Markit Economics” will publish the business activity index in the US manufacturing sector. It is worth noting that the US latest releases point to an economic slowdown, amid this we can expect the data release that are slightly worse than the forecasted medians.
The pair stuck in a range, leaving no attempts to its growth. There no traders who want to buy the pound which is an alarming signal for the bulls.
The support levels are 1.6280 - 1.6300, and the resistance levels are 1.6370 - 1.6390.
MACD is in a positive territory.
The dollar shows the overbought signs which could still lead the pair correction higher. To achieve this the pair needs to overcome the resistance level at 1.6390-1.6410, then we can expect growth to the 65th figure. The loss of the 63rd figure will open the way to the 62nd one.
The pair may continue its consolidation near the 109th figure. Recently we observed synchronous sale in most world stock indices which will act as a deterrent to the pair quotations growth. The Japan internal situation is negative and the bulls will buy with great enthusiasm due to the share price strong decline. The pair is trying to consolidate above the 109th figure. The level of 108.50-108.70 provided a strong support to the pair and was broken through and the pair fell down to 108.00-108.20. The dollar is overbought and it is unable to continue its growth and to consolidate above the 109th figure that provoked a profit-taking that led to its decrease.
The support levels: 108.50-108.70, and the resistance levels: 109.20-109.40.
The MACD indicator is in a positive territory.
We cannot talk about the uptrend end, nevertheless the bears may test the support level of 108.00-108.20 and 107.60-107.80.