The EUR/USD is trading slightly higher at the mid-session on extremely light volume. Tomorrow is a U.S. holiday and many of the major players are already on the sidelines.
There were economic reports out of the Euro Zone today. French Flash Manufacturing PMI came in as expected at 51.5, but below the previous 51.8. French Flash Services PMI came in at 52.6, above expectations and the previous read.
German Flash Manufacturing PMI came in lower than the estimate and the previous read at 54.4. German Flash Services PMI was 55.0, higher than the forecast and the previous read.
Euro Zone Manufacturing PMI was 53.7. This beat the forecast and the previous read. Flash Services PMI also beat the estimate and last month’s reading.
In the U.S., the major reports are Durable Goods, Weekly Unemployment Claims and the FOMC Meeting Minutes.
Minor reports include the Home Price Index, Flash Manufacturing PMI, New Home Sales and Revised University of Michigan Consumer Sentiment.
Traders may react to the reports but the reaction is likely to be muted because of the thin trade. These reports should not make the Fed think twice about raising rates in December.
The main trend is down according to the daily swing chart. A trade through 1.0569 will signal a resumption of the downtrend.
Potential targets on the downside include the December 3, 2015 main bottom at 1.0539, the April 13, 2015 main bottom at 1.0528 and the March 13, 2015 main bottom at 1.0462.
Based on the current price at 1.0625 and the early price action, the direction of the EUR/USD today will be determined by trader reaction to the uptrending angle at 1.0629.
A sustained move over 1.0629 will indicate the presence of buyers. This could trigger a rally into the resistance cluster at 1.0689 to 1.0692. This area is also the trigger point for an acceleration to the upside.
A sustained move under 1.0629 will signal the presence of sellers. The first downside target is an uptrending angle at 1.0599. This is followed closely by the main bottoms at 1.0569 and 1.0539.
Watch the price action and read the order flow at 1.0629. Trader reaction to this angle should set the tone for the day.