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EURUSD : Consolidating Ahead of a Big Move, Bias Towards Downtrend

EUR again going down after the downbeat PMI data. Earlier the currency gained strength against US dollar after the Fed stated that the interest rate will continue to be lower for a foreseeable time. Today a report in euro zone’s PMI released which showed that the activity in services and manufacturing sector across the region fell to 6 month low of 52.8 in June from 53.5 in May. The manufacturing PMI fell to 51.9 from 52.2 in May however the services PMI declined to 52.8 from 53.2 in May compared to the economist’s expectation for an increase to 53.3. Germany and France PMI also ticked down.

(EURUSD : Daily Chart)

On the 4 hour chart, the pair still seems like consolidating within two contracting trend lines so there is a chance that the pair might show a big move breaking the support or resistance trend line. The bias is towards the downtrend as 50 day SMA has just crossed the 100 day SMA to move down signaling a bearish trend. Fundamentally also the pair seems bearish.