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France has been providing better-than-expected data compared to German reports for a while. The same repeated at yesterday's session.
French: Flash France Manufacturing Output Index rose to a 4-month high of 48.3 (46.6 in April),
Flash France Manufacturing PMI climbed to a 12-month high of 49.3 (48.0 in April). Flash France PMI data signaled a rise in private sector output for the fourth consecutive month in May. It increased to 51.0 from 50.6 in April.
Germany:Flash Germany Manufacturing PMI is at 51.4 (52.1 in April), which is a 3-month low. Flash Germany Manufacturing Output Index came to 52.7 (54.3 in April), a 3-month low. May data signaled further slowing in private sector output growth rate in Germany. Despite signaling an expansion, the rate of growth was the weakest in 2015 so far.
Eurozone: Flash Eurozone Services PMI Activity Index is at a 4-month low of 53.3 (54.1 in April).
Flash Eurozone Manufacturing PMI came to 52.3 (52.0 in April), a 13-month high. Flash Eurozone Manufacturing PMI Output Index was printed at 53.5 (53.4 in April), which is a 2-month high. The eurozone economy lost growth momentum for a second successive month in May, according to the latest PMI survey data.
Today, traders eye ECB President Draghi's speech. We expect the President to touch inflation and unemployment sectors, which are very sensible.
Technical view: Ahead of Draghi's speech, the euro is trading at 1.1110 compared to 1.1112. At yesterday's session, the pair paused a 3-day losing streak and managed to close with mild gains. The pair closed below 100Dema and 20Dsma. The weekly 20Dsma is found at 1.1125. On a weekly basis, the pair made a double top at 1.1467. The pair is trading near the support zone of 1.1050, bulls' last hope is found at 1.0950 50Dsma. A daily close below 1.1050 is likely to cancel the recent uptrend. We have been repeatedly advising book profit at 1.1450. On a monthly basis, the pair lost its gains, trading in losses. The parallel support is found at 1.1067 and 1.1050. Intraday resistance is seen at 1.1181 and support is at 1.1090 and 1.1060. In the hourly chart, higher lows formation shifted to lower highs favoring bears. This view will be erased in case the price breaches the 1.1181. Bulls have an opportunity to trade above 1.1185 like at 1.1230 and 1.1250. Selling opportunity are available for bears below 1.1050 with small targets at 1.1035, 1.1000, and 1.0950/1.0935 initially, later it can extend towards 1.0780. Bulls must close above 1.1181 to cancel the view of 1.0780. Bears must close below 1.1030. The real panic appears in case the price falls below 1.1030. At yesterday's session, the pair rejected at the broken ascending trendline from the lows. The pair broke the 2-week ascending trendline. One trendline moved from a low of 1.1067 to 1.1467 and the other from a low of 1.0521.
Trade: Buying above 1.1185
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
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