EURUSD Consolidating Losses As Greece Drama Continues

Euro moved lower sharply to trade near 1.1040, and currently consolidating in a tiny range ahead of key releases in the Euro zone.

Euro Zone Services Purchasing Managers Index (PMI) will be released by the Markit Economics today, which is expected to increase from 53.3 to 54.4 in June 2015.

Chinese HSBC PMI was released today, which disappointed investors by registering a decline from 53.5 to 51.8.

Chinese Services PMI

Today the Chinese HSBC Services PMI, which is an important parameter in analyzing the service sector and for which the data is compiled from monthly replies to questionnaires sent to purchasing executives was released by Markit Economics. The market was expecting it to rise from the last reading of 53.5 to 53.8 in June 2015. However, the result was disappointing, as there was a decline noted in the Chinese HSBC Services PMI. It came in at 51.8, and just managed to stay above the neutral level.

There was no real reaction amount the pairs like EURUSD, AUDUSD and NZDUSD, as the data missed the mark. However, we can witness the risk sentiment taking a hit in the near term if sellers gain momentum. There is no encouraging sign as of writing that can lift pairs like EURUSD.

Euro Zone Services PMI

There is a critical release lined up in the Euro Zone today, as the Services Purchasing Managers Index (PMI), which is an indicator of the economic situation in the Euro Zone services sector will be released. The forecast is of a rise from 53.3 to 54.4 in June 2015. Any miss in the outcome might weigh on the shared currency moving ahead.

EURUSD Technical Analysis

The Euro was under pressure as Greece tensions continue to escalate in the Euro Zone. The pair is trading lower and currently consolidating around the 1.1090. A break above the middle Bollinger band on the 4-hours chart might encourage buyers in the short term.

Yours,
Vladimir

Advertisement

Click To Join Our Community Telegram Group