EURUSD reversed from the early gains following the release of weaker-than-expected HCOB manufacturing and services PMI data from Germany and France. However, Germany’s manufacturing showed signs of resilience with a slight uptick to 43.1 in December. As of this writing, the currency pair retreated to below 1.0950 after rising above the psychological resistance level. 1.1000 as we expected.
On Thursday, EURUSD bounced back to above 1.10 after the ECB maintained its rates and pushed back against expectations of immediate cuts. Moving ahead, despite the retreat, the medium-term trend is very supportive and I still expect there are chances that the currency pair can easily rise towards my next upside targets of 1.1050/80.
