The EURUSD is increasing after less hawkish FED minutes. The pair was last seen at 1.0435 level. Also, the better-than-expected PMI readings for November led the pair make rally above 200 DMA, 1.0400 level. The manufacturing PMI came at 47.3 (previously 46.40) and services PMI at 48.6 (previously 48.6). Furthermore, ECB officials continue to speak hawkish by saying a 75bps rate hike for the next meeting.
Technically, the momentum is positive because DXY softens blelow 106.00 level. For the first resistance, 1.0480 should be followed. Further bearish extension is likely to be slower since the daily stochastics is near overbought condition. Any pullback could meet support at 1.0400 (200DMA). The next support is seen at 1.0295. We look for consolidation between 1.00 – 1.05
Support: 1.0400 – 1.0295 – 1.0220
Resistance: 1.0480 – 1.0560 – 1.0615