The common currency gained 0.67% on the day on Friday to close at a 3-month high. The gains in the euro were led by a factor of weaker USD and somewhat better than expected regional flash PMI’s. For the eurozone, the combined PMI reading was disappointing. Manufacturing PMI fell to 47.0 while services PMI rose to 53.4. ECB President Draghi was heard informing EU officials about the weakening growth in the eurozone.
Can EURUSD Maintain the Gains?
With the common currency trading flat, for the most part, this year, the recent close above $1.1300 is critical. A continued momentum to the upside could see the euro rising to $1.1400 as the next level. However, there is scope for prices to pull back in the short term. Temporary support is seen near the 1.1339 level which could see price falling back to establish support more firmly. This will eventually signal a reversal that could keep EURUSD on track to test the $1.1400 handle eventually.
