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EUR/USD forex signal - Eurozone flash manufacturing and services PMI - 23 Apr 2018

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The economic calendar today will be dominated by the flash manufacturing and services PMI reports across some of the major Eurozone economies. This will eventually culminate with the Eurozone flash services and manufacturing PMI report for the month of April.

The PMI reports will be released by Markit until 0800 GMT. Economists have forecast that the manufacturing activity in the Eurozone remained stable at 56.6. This marks an unchanged print from the manufacturing PMI report from the previous day. The services PMI report is expected to slightly ease to 54.8 from 54.9 that was registered in the previous month.

Both the services and manufacturing PMI reports have signaled that economic growth in the above sectors had eased following a strong increase in the final quarters of last year.

This is expected to reflect on a potentially weaker pace of GDP reports. For the first quarter of 2018, both manufacturing and services PMI showed an almost flat print which suggests that the momentum in growth may be easing back. However, a surprise pick up in the flash reports could signal a rebound in the economic activity.

Based on the above, today's forex trading signal is EURUSD. The currency pair was seen trading in a range for the most part of last week. However, the sideways range was breached with prices falling just a few pips short of the 1.2243 level of support.

We expect the currency pair to retrace the losses in the near term. This could potentially signal a retest back to the breached support level at 1.2300. Therefore, we are looking to short EURUSD at 1.2300 with stops around 1.2320 while targeting the lower support level at 1.2243.

forex trading signal eurusd 23 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.