EURUSD forms ascending triangle ahead of NFP data
The British pound and FTSE 100 declined slightly even after the relatively strong services and composite PMI data from the UK. According to Markit, the country’s services PMI rose from 61.8 in April to 62.9 in May. In the same period, the composite PMI rose t 62.9, which is a sign that the country’s economy is doing well since the services sector accounts for the biggest part of the economy. On Tuesday, Markit also published strong manufacturing PMI data. The top movers in the FTSE 100 were Johnson Matthey, Fergusson, Standard Life Aberdeen, and Sainsbury.
The euro held steady against the US dollar after the strong Eurozone services PMI. The PMI rose to 55.2 in May from 50.5 to 55.5 as more European countries continued to reopen. The composite PMI rose to 57.1. The strong performance was spread across the region, with the services PMI in Germany and France rising to 52.8 and 56.6, respectively. Still, attention remains on the upcoming European Central Bank (ECB) meeting that will conclude next week. Analysts expect the bank will leave its pandemic response tools unchanged and provide more signals on when it will move.
Cryptocurrencies rebounded as the US dollar weakened and the appetite for risk rose. Bitcoin has risen by more than 5% in the past 24 hours while Binance Coin and Polkadot have jumped by more than 10%. The next key mover will be the official non-farm payrolls that will come out tomorrow. If the numbers are so strong, they will incentivize the Fed to start tightening. The coins will also be affected by any measures to regulate them by the United States government as the number of ransomware attacks rise. This week, JBS, a meat processor was attacked. A ferry service in Massachusetts was also hacked.
The ETHUSD pair rose to an intraday high of 2,885, the highest level in almost a week. On the four-hour chart, the pair managed to move above the pink symmetrical triangle pattern. It also rose above the 25-day moving average while the Relative Strength Index (RSI) has done a bullish divergence pattern. It has also moved above the 38.2% Fibonacci retracement level. Therefore, the pair may keep rising as bulls target the 50% retracement level at 3,135.
The BTCUSD pair tilted upwards as cryptocurrencies rose. It rose to a high of 39,406, which is slightly below the important resistance at 40,000. The price is also above the lowest level in May of 30,000. Like the ETHUSD, it also moved above the symmetrical triangle level. It has also risen above the 23.6% Fibonacci retracement level. Therefore, the pair may keep rising as bulls target the important resistance at 40,000.
The EURUSD pair declined to a low of 1.2180 and then rebounded as focus shifted to the official non-farm payrolls (NFP) data. On the four-hour chart, the pair has moved above the ascending channel that connects the lowest levels since May. It also seems to have formed an ascending triangle pattern and is inside the Ichimoku cloud. Therefore, the pair may keep rising ahead of the latest NFP data.