Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
EUR/USD Rally Continues as Positive Euro-Zone PMI Data Provides a Boost

EUR/USD Rally Continues as Positive Euro-Zone PMI Data Provides a Boost

Nick Cawley, Senior Strategist

EUR/USD Price and PMI Data, News and Analysis:

  • French manufacturing PMI hits a 21-month high.
  • EUR/USD respects technical support and eyes resistance.
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Find Out the Number One Mistake Traders Make
Get My Guide

EUR/USD Short-Term Rally Remains in Place

The latest set of Markit PMI releases for June show economic activity picking up in the Euro-Zone as a loosening of lockdown conditions boosts economic activity. The French releases all pushed back above the 50 level, the divide between contraction and expansion, with the manufacturing index hitting its highest level in 21-months. The German data, while rebounding from April’s low, points to activity growing but at a more subdued rate with ‘firms starting to feel a bit more bullish about the outlook’ although concerns about the jobs market remain. According to IHS Markit, the flash Euro-Zone PMIs indicated ‘another substantial easing of the region’s downturn in June ‘ and while output and demand are still falling they are no longer collapsing.

According to chief business economist Chris Williamson, ‘However, with the timing of a return to normal still something that can only be speculated upon, and virus-related restrictions likely to continue to hit many businesses for the rest of the year, we remain very cautious of the strength and sustainability of any economic rebound’.

EUR/USD continues Monday’s push higher and this week’s move has broken a series of lower highs and lower lows that weighed on the pair. EUR/USD also produced a textbook bounce of the 61.8% Fibonacci retracement level around 1.1167 and this is likely to provide support again in the case of any sell-off. Chart resistance levels are seen around 1.1353 and 1.1400 before the June 10 multi-week high at 1.1423 comes into view.

EUR/USD Daily Price Chart (December 2019 – June 23, 2020)

Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 2% 2%
Weekly -17% 5% -5%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

What is your view on EUR/USD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.