Strong German Manufacturing data inflate Euro and revive hopes of recovery
The Euro jumped above 1.08 handle on Friday, boosted by upbeat German Manufacturing PMI data (Feb 47.8 vs 44.8 f/c and 45.3 in Jan).
Fresh advance revives hopes of recovery, which faded after Thursday’s upside rejection and daily close in red, with marginally lower new low (1.0778) being posted.
Stronger than expected German Manufacturing data improved near-term sentiment, signaling easing recession in Manufacturing sector, despite Services PMI falling below expectations.
Positive signals are developing on daily chart as stochastic emerged from oversold zone and RSI is at the borderline, while momentum turned higher, deeply in the negative territory.
These are initial recovery signals which would require further confirmations on extension and close above falling 10DMA (1.0839) and broken Fibo 76.4% level (1.0863).
Caution on repeated recovery failure and today’s close in red as the pair is on track for the third consecutive strong bearish weekly performance that continues to weigh.
Res: 1.0821; 1.0839; 1.0863; 1.0899
Sup: 1.0778; 1.0752; 1.0700; 1.0682