Manufacturing in the U.S. probably contracted in November at the fastest pace in 26 years as consumers and companies worldwide cut spending, economists said before reports today.
| Long signal | Short signal | |
|---|---|---|
| Buy a break of resistance level at 1.2715 | Sell a break of support level at 1.2620 | |
| EUR | Buy a break of resistance level at 1.2820 | Sell a break of support level at 1.2570 |
| Buy a bounce at 1.2620 | Sell a failure of breaking the resistance 1.2715 |
Fundamental
Manufacturing in the U.S. probably contracted in November at the fastest pace in 26 years as consumers and companies worldwide cut spending, economists said before reports today. The Institute for Supply Management’s factory index dropped to 37 last month, the lowest level since 1982, from 38.9 in October, according to the median estimate in a Bloomberg News survey. A reading of 50 is the dividing line between expansion and contraction. The financial crisis has spiraled into a global economic downturn that’s hurt sales here and abroad, forcing manufacturers to pare production as orders plunge. Economists increasingly are projecting that the U.S. recession will be one of the most severe in the postwar era.
Technical
Technical analysis show us the euro may continue its downtrend as MACD giving us a selling signal by crossing MACD line to the signal line and RSI breaks 70% line downwards. Bollinger gives us a bearish signal by closing the candle below the lower band.
EUR/USD (Daily Chart)
The primary tendency is coming back into the standard error channel.
The pair breaks Gann fan first level.
EUR/USD (Hourly Chart)
The Minor trend fall below the Fibonacci fan.
Resistance
1.2820
1.2715
Support
1.2620
1.2570
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