EUR/USD Hits Fresh 2016 Highs on PMIs, Nears 1.1500

EUR/USD Hits Fresh 2016 Highs on PMIs, Nears 1.1500

2 May 2016, 10:27
Roberto Jacobs

EUR/USD Hits Fresh 2016 Highs on PMIs, Nears 1.1500

Having bottomed just below 1.1450 levels, the EUR/USD pair picked-up significant strength post-European open and now clinches fresh session highs after the release of upbeat manufacturing PMI readings from the Euro zone.

EUR/USD bounces-off 1.1450

Currently, EUR/USD trades +0.24% higher at fresh 2016 highs of 1.1477, now heading for a test of 1.1500. The bid tone around the EUR gather pace as mixed trading on the European stocks spooked markets once again, with investors running for cover in the safe-havens such as the euro. Germany’s DAX rises +0.67%, while the pan-European benchmark, the Euro Stoxx 50 edges -0.10% lower. London markets remain closed on account of May Day.

Moreover, the latest spurt of buying interest seen around EUR/USD can be attributed to auspicious manufacturing sector activity reports from the Euro zone as well as from Germany. Germany's final manufacturing PMI increased to 51.8 in April, from the previous final reading of 50.7 points booked in March. While Euro zone’s manufacturing PMI booked 51.7 points last month, up from March’s 51.6 points.

With the PMI reports now out of the way, the next event in focus for today is expected to be ECB’s Draghi’s speech and the ISM manufacturing PMI report due later in the American session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1500 (psychological levels). A break beyond the last, doors will open for a test of 1.1550 (Oct 2015 levels). On the flip side, the immediate support is placed at 1.1459/48 (1h 20-SMA/ session low) below which at 1.1412/1.1402 (5-DMA/ 1h 50-SMA) could be tested.


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