EUR/USD Breaking Higher on Positive PMIs

EUR/USD is above high resistance as purchasing managers’ indices in the euro-zone are relatively good.

The last figures released are for the whole continent. The manufacturing sector fell below the critical 50 point mark to 49.7, a bit higher than 49.6 that was expected. But on the other hand, the large services sector remained at 52 points, significantly above the 50.9 point that was predicted. This gives the needed boost.

EUR/USD is currently at 1.4470, above resistance at 1.4450 – a line that held the pair down several times recently.

In France, the manufacturing sector fell into contraction land by scoring less than 50 points – only 49.3 points. A score of around 50 was predicted. But on the other hand, the large services sector came out at 56.1, well above expectations at 53.3 points.

In Germany, it was the other way around: the services sector fell short of estimations with a score of 50.4 points (exp. 52.1) while the manufacturing sector scored 52 points (50.9 exp.).

Last month, all the purchasing managers’ indices disappointed and pointed to a slowdown across the board. While the numbers do not point to a recovery, they still show that this slowdown doesn’t affect everyone in the same way, and that there are still some signs of growth, in certain sectors and certain countries.

EUR/USD traded around 1.44 before the publications, and is now above resistance at 1.4450. Further resistance is at 1.4520, followed by 1.4650. Below, 1.4350 and 1.4282 provide support.

For more on the pair, see the EUR/USD forecast.