EUR/USD: Gains triggered by strong EU PMIs to extend above 1.1350

The EUR/USD pair has accelerated its advance fueled by strong EU Markit PMIs, posting +0.62% gains to 1.1330, and could see strength extended above the 1.1350 level, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“EU Manufacturing PMI came in at 46.9 sharply up from the previous 39.4 and above the expected 44.5. The Services PMI printed at 47.3 against 30.5 in May.  German data were also better-than-anticipated, while French figures surprised by jumping to expansion territory.”

“In the 4-hour chart, the EUR/USD pair has recovered above all of its moving averages, although the 20 SMA remains below the 100 SMA. Technical indicators, in the meantime, head firmly north, approaching overbought levels, with no signs of giving up. Further gains are to be expected on a break above 1.1350, the high from the last week.”

“Markit will publish the preliminary estimate of the June US Manufacturing PMI, foreseen at 48 from 39.8 previously, and the Services PMI for the same month, expected at 46.5 from 37.5 in May. The country will also publish May New Home Sales and the June Richmond Fed Manufacturing Index.”