EURUSD trades declined significantly at the beginning of the week’s trading today, Monday, after data showed that the growth of the manufacturing sector in the euro area remained steady at the beginning of the year, but the pace of growth has slowed since December of last year with renewed closures across the continent, along with a shortage Supplies, hurting activity. Economic in the Eurozone. The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 54.8 in January from 55.2 in December.
Through the technical outlook on EURUSD’s trading on the hourly interval, the trading is stabilized below the descending trend line, along with continued trading below the 50 and 100 SMA, which supports the possibility of further decline in the pair. Therefore, we expect the EURUSD trading to continue declining with weak buying momentum, targeting 1.2080 and 1.2065 levels, respectively, provided trading remains below 1.2120.