As traders wait for important economic data, How is the EURUSD pair trading? Learn this from the 21 February EURUSD Fundamental Drivers Forecast.
21 February, OctaFX – The EUR/USD pair is little changed as traders wait for important economic data from the European Union and the United States. In the early hours, we will get the manufacturing and services PMI data from Germany. Traders expect the manufacturing activity in Germany to slow to 60.6, down from 61.1 reported in the previous month.
They also expect the services activity to slow to 57 from last month’s 57.3. In the afternoon, the same data will be released in the U.S where traders expect manufacturing PMI to slow to 55.4 compared to last month’s 55.5. They expect the services PMI to move up from 53.3 to 54.0. The biggest news of the day will be the FOMC minutes which will give us a better direction of the Fed.
21 February EURUSD Fundamental Drivers Forecast
The strong dollar, caused partly by higher U.S Treasury yields pushed the EUR/USD pair lower. Indicators imply that the pair could continue the downward trend. As shown below the arrangement of the long and short-term moving averages indicate that the pair could continue moving down.
The pair is now at an important Fibonacci Retracement level of 61.8% and there is a likelihood that it might drop to the 70.70% level at 1.2307.
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