EUR/USD: Euro Trading Lower Despite Upbeat Chinese PMI

EUR/USD: Euro Trading Lower Despite Upbeat Chinese PMI

For the 24 hours to 23:00 GMT, EUR rose 0.40% against the USD and closed at 1.2864.

Investors initially sold the Euro after international lenders failed to reach a deal to release emergency aid for Greece, but quickly reversed those trades after German Chancellor, Angela Merkel, indicated that a deal was still possible next week when they meet again.

In the Asian session, at GMT0400, the pair is trading at 1.2841, with the EUR trading 0.18% lower from yesterday’s close. Earlier, the Euro was trading higher for a brief period as risk appetite was boosted, following a strong Chinese manufacturing data.

The HSBC flash manufacturing purchasing managers’ index in China climbed to a 13-month high reading of 50.4 in November from a reading of 49.5 reported in October.

The pair is expected to find support at 1.2762, and a fall through could take it to the next support level of 1.2684. The pair is expected to find its first resistance at 1.2894, and a rise through could take it to the next resistance level of 1.2946.

Trading trends in the pair today are expected to be determined by the release of manufacturing and services PMI in the Euro-zone, Germany and France. Investors also eye the Euro-zone’s consumer confidence data scheduled later today.