EURUSD – Bears keep control ahead of Jackson Hole meeting
The Euro remains under increased pressure in early Wednesday and fell to the lowest in nine weeks, after probe through former higher base at 1.0835 zone (late June / early July.
Eurozone PMI data was the key release of the European session today, with significant drop in the activity in services sector (Aug 48.3 vs July 50.9 and f/c 50.5) as the index fell below 501 threshold which divides growth from contraction, for the first time since December.
On the other hand, bloc’s manufacturing sector grew above expectations (Aug 43.7 vs July 42.7 and 42.6 consensus) which partially offset negative impact, but the activity remains at the lowest levels since June 2020, which contributes to overall negative larger picture.
Markets await the outcome of Jackson Hole symposium, for more details about the steps of major central banks in the near future, which is likely to be key near-term market driver.
Daily chart shows strengthening negative momentum and MA’s predominantly in bearish configuration, which maintains pressure.
Bears eye next key supports at 1.0797/86 (200DMA / Fibo 76.4% of 1.0635/1.1275), violations of which would generate strong bearish signal.
Meanwhile, some price adjustments before attack at these supports cannot be ruled out, with the upticks to remain capped by falling 10DMA (1.0891) to keep bears intact.
Only acceleration above 100DMA (1.0928) would sideline immediate bears.
Res: 1.0879; 1.0891; 1.0928; 1.0962
Sup: 1.0797; 1.0733; 1.0700; 1.0667