EUR/USD Daily Technical Analysis for March 27, 2017

The EUR/USD edged higher following the stronger than expected European PMI data, which hit fresh highs, driving yields slightly higher.  Resistance on the currency pair is seen near the February highs at 1.0829, and then the 200-day moving average at 1.0883.  Support on the EURUSD is seen near the 10-day moving average at 1.0742. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to a higher exchange rate.

Eurozone PMIs Were Stronger Than Expected

Eurozone PMIs came in stronger than expected for March and both manufacturing and services readings surged. The former jumped to 56.2 from 55.4 and the latter to 56.5 from 55.5, leaving the composite at 56.7, up from 56.0 in the previous month. After the disappointing French business confidence readings Thursday it looked as though the PMIs could fall back in March, but in the even the flash composite now stands at a 71 months high.