On July 23, the Richmond Manufacturing Index dropped to -17, below the forecast of -7, and June’s -10, signalling a notable decline in manufacturing activity. Additionally, U.S. existing home sales fell to 3.89 million units, missing the forecast of 3.99 million and well below the previous 4.11 million.
In Europe, consumer confidence in the Eurozone remained steady at -13, matching expectations but showing no improvement.
On July 24, French and German PMI data were released. The French Flash Manufacturing PMI fell to 44.1 from a forecast of 45.8, while the services PMI improved slightly to 50.7 from 49.7.
Germany’s manufacturing PMI dropped to 42.6, below the forecast of 44.1, while the services PMI slightly decreased to 52.0 from the expected 53.2.
Looking ahead, the Eurozone’s flash PMIs are anticipated, with the manufacturing PMI expected at 46.0 and services PMI at 52.9. The GBP/USD will be influenced by the UK’s flash manufacturing PMI, forecast at 51.1, and services PMI at 52.5.
In the U.S., the flash PMIs for manufacturing and services are forecast at 51.7 and 54.7, respectively. Additionally, new home sales data is expected, with a forecast of 639K, up from the previous 619K.
Support levels are $104.204, $103.961, and $103.651. The 50-day EMA is $104.375, while the 200-day EMA is $104.807.
An ascending triangle suggests resistance near $104.540, and a break above this level could trigger strong buying. The outlook remains bullish above $104.54, but a break below this level could lead to sharp selling.
The EUR/USD is trading at $1.08512, down 0.08%. On the 4-hour chart, the pivot point is $1.08685. Immediate resistance levels are $1.09032, $1.09216, and $1.09448. Support levels are $1.08412, $1.08246, and $1.08052.
The 50-day EMA is $1.08759, while the 200-day EMA is $1.08252. The outlook remains bearish below $1.08685; a break above this level could signal a bullish trend.
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.