Chart: WorldWideMarkets Alpha Trader
The euro showed resilience today and rose to 1.3795 from the session low of 1.3735 (+60 pips) against the lower dollar led by a slightly improved euro zone PMI.
Although the euro zone PMI data suggested an improvement in the euro zone manufacturing sector, the prior PMI data from France was weak.
The French December manufacturing PMI came out lower than expected at 47.1 versus the median forecast of 49.1 while the previous month was 48.4 released at 8:00 GMT. The euro fell 25 pips from 1.3760 to 1.3735.
The German Flash Manufacturing PMI rose to 54.2 in December versus the forecast of 53.1 compared to 52.7 in November. (8:30 GMT) The euro zone Manufacturing PMI rose to 52.7 in December versus the forecast of 51.9. The previous month was +51.6. (9:00 GMT). The euro rose 60 pips to 1.3795.
Traders are still waiting for the upcoming FOMC meeting results as to the timing of the QE tapering. The range for the euro may remain confined between 1.3700 – 1.3850 in the interim.
Support: 1.3727, 1.3709, 1.3695
Resistance: 1.3803, 1.3811, 1.3818, 1.3845