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Forex: EUR/USD bounces to 1.3020 after US data load

FXstreet.com (Barcelona) - The EUR/USD is rebounding more from the European downside ever since the publication of US manufacturing PMI by Markit (flash) and the movement has extended to 1.3027 session high, so far. Still away from yesterday’s close of 1.3059, though.

The rest of US housing and manufacturing data is out now. Disappointing market analysts, the manufacturing index by Richmond Fed fell from 3 to -6 in April, instead of rising to 7 as expected. The April new home sales report registered a 1.5% rise, from 0.411M to 0.417M, staying below the 0.420M consensus. The March drop was revised higher from -4.6% to -7.6%.

The flash Markit manufacturing PMI in the US fell from 54.6 to 52.0 in April, disappointing market consensus that was pointing to 54.0. Having risen 0.6% in January, the US housing price index rose once again in February, increasing the pace to 0.7%, according to the Office of Federal Reserve Housing Enterprise Oversight. Ahead comes more housing and manufacturing data: new home sales and Richmond Fed manufacturing.

Despite the Bank of Spain’s announcement of 0.5% contraction of GDP Q1, the country was able to sell a total of €3.010B of 3-months (average yield at 0.12%, from 0.285% in March-19) and 9-month debt (average yield at 0.787%, from previous 1.007%).

“EUR/USD made a bearish engulfing pattern on 17 April. A short-term bearish bias is favored as long as the hourly resistance at 1.3125 (61.8% retracement) holds (on an hourly close basis)”, wrote MIG Bank analyst Bijoy Kar and Luc Luyet, monitoring the hourly support at 1.3002 (17/04/2013 low), while other supports can be found at 1.2962 (08/04/2013 low) and 1.2901 (05/04/2013 low).

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