Technical Analysis EUR/USD for 8/6/15
The EUR/USD headed for support in the wake of the stronger than expected ISM services report released on Wednesday. Dollar bulls were put on their heels initially following the weaker than expected ADP private payroll report which showed an increase of 185K jobs instead of the 215K expected by economists.
According to the Institute of Supply Management the July U.S. PMI-NMI rose to 60.3 compared to the estimate of 56.2. The component data improved and the ISM-adjusted measure rose to 59.7 from 55.8 in June.Business activity rose to 64.9 from 61.5.New orders rose to 63.8 from 58.3.The inventory component rose to 57.0 from 55.0 last month.The price component decreased to 53.7 from 53.0.Order backlogs rose to 54.0 from 50.5.
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The EUR/USD held support at an upward sloping trend line at 1.0850. Short term resistance is seen at the 10-day moving average near 1.0975. Momentum has turned negative, but the trajectory of the MACD is flat, pointing to continued consolidation.