EUR/USD: Potential Rebound from Consolidation Zone
Updated
The EUR/USD pair remains in a sideways movement following the profit realized from our previous analysis. The price reversed during the latter part of Friday after US data revealed that inflation, as measured by the Personal Consumption Expenditures (PCE) Price Index, increased by 2.7% year-over-year in April, consistent with March's figures and market expectations. Today, the price is approaching the 50% and 61.8% Fibonacci retracement levels within this consolidation zone, indicating a possible rebound following the release of the US PMI data later today. Current forecasts suggest a bearish sentiment favoring the US Dollar.
Key Economic Indicators
Later today, the US economic docket will feature the ISM Manufacturing PMI data for May. Investors anticipate an improvement in the reading to 49.8 from April's 49.2. A reading above 50 would indicate a return to expansion territory for business activity, potentially supporting the USD in the latter half of the day. Conversely, if the data meets or falls below expectations, a price rebound from the indicated area is likely.
Technical Analysis: Footprint Chart Insights
The footprint chart shows a block of buy orders that could be triggered in correlation with limit orders, supporting a potential price rebound. This aligns with the anticipated market reaction to today's PMI data, making this a critical area to watch for possible bullish movement.
In summary, keep an eye on the US PMI data release today, as it will play a pivotal role in determining the EUR/USD movement. The technical setup and current forecasts suggest a potential rebound from the consolidation zone, depending on the PMI results.
Key Economic Indicators
Later today, the US economic docket will feature the ISM Manufacturing PMI data for May. Investors anticipate an improvement in the reading to 49.8 from April's 49.2. A reading above 50 would indicate a return to expansion territory for business activity, potentially supporting the USD in the latter half of the day. Conversely, if the data meets or falls below expectations, a price rebound from the indicated area is likely.
Technical Analysis: Footprint Chart Insights
The footprint chart shows a block of buy orders that could be triggered in correlation with limit orders, supporting a potential price rebound. This aligns with the anticipated market reaction to today's PMI data, making this a critical area to watch for possible bullish movement.
In summary, keep an eye on the US PMI data release today, as it will play a pivotal role in determining the EUR/USD movement. The technical setup and current forecasts suggest a potential rebound from the consolidation zone, depending on the PMI results.
Trade closed: target reached
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