EUR/USD Price Rally Halts, US ISM Manufacturing PMI Eyed

• The EUR/USD pair is almost to hit a dynamic resistance.
• The US data could change the sentiment in the short term.
• After its massive drop, a rebound was natural.

The EUR/USD price rallied in the short term and reached 1.0877 today. The US dollar lost significantly as the week began, which helped the Euro gain momentum.

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Fundamentally, the greenback depreciated in the short term as the US Core PCE Price Index increased only by 0.3% versus the 0.4% growth expected, while Revised UoM Consumer Sentiment came in at 62.0 points below 63.1 points expected on Friday.

Today, the Eurozone Final Manufacturing PMI came in at 47.3 points versus the 47.1 expected, while German Final Manufacturing PMI was reported at 44.7 points, above the 44.4 points expected.

Later, the US economic figures should bring more action. The ISM Manufacturing PMI represents a high-impact event and is expected at 47.5 points versus 47.7 points in the previous reporting period. Final Manufacturing PMI could remain steady at 49.3 points, while ISM Manufacturing Prices may drop from 51.3 points to 51.2 points. Furthermore, Construction Spending and Wards Total Vehicle Sales data will also be released.

EUR/USD Price Technical Analysis: Dynamic Resistance

The EUR/USD pair rallied after failing to stay below the 1.08 psychological level. It was almost to hit the descending pitchfork’s upper median line (uml). This represents a dynamic resistance (upside obstacle). So, testing and retesting this level may announce a new sell-off. The weekly pivot point of 1.0840 represents the first downside target.

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Technically, only a valid breakout through the upper median line (uml) may announce further growth toward the former highs. Still, as long as it stays within the descending pitchfork’s body, the EUR/USD pair could be attracted by the median line (ml). Still, it’s premature to talk about this scenario as long as it’s trading far above today’s low of 1.0788.

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