On the downside, support is at $1.30863, with subsequent levels at $1.3049 and $1.30132.
The 50-day EMA at $1.32382 and the 200-day EMA at $1.32552 indicate that the pair is trading below the major moving averages, indicating that a sustained move above $1.31784 is needed to see a bullish trend reversal to confirm.
Euro stable after mixed PMI data; Focus shifts to Italian retail
The euro (EUR) is trading flat after mixed PMI data. Spain’s services PMI rose to 57.0, while Italy and France showed softer readings at 50.5 and 49.6 respectively.
The total PMI for Final Services in the eurozone came to 51.4, above expectations.
Traders are now focusing on the Italian Retail Sales report, which is expected to show growth of 0.2%, down from the previous 0.5%, which could impact sentiment for the EUR .
EUR/USD Technical Forecast
The EUR/USD is trading at $1.10315, down slightly by 0.02%, but remains above its pivot point at $1.10259. The pair has found strong support near $1.1025 and is forming a double bottom pattern, which generally signals a potential bullish reversal.