In today’s live trading session, we discussed the Euro PMI manufacturing data release and the implications it can have on our pending trade setups.
During the London session, the European Union printed a bullish result across the board for its purchasing managers index. This measures the overall economic health of a nation by looking at orders for manufacturing and service industries. Not only were the results better than the forecasts, but they were also above 50.0 which suggests industry expansion. This is a good sign for the European Union as it continues to reopen. The wealth of good news also spread to the United Kingdom, which also printed bullish manufacturing PMI data.
How does this affect our pending trades? In light of the news, both EURUSD and GBPUSD are up 0.59% and 0.45% respectively. Since then, EURUSD has run into some intraday resistance at 1.13500. Depending on the reaction at this level, we will enter either a buy or a sell. GBPUSD appears to still have some upside potential left. Depending on the next four-hour closure, we may or may not have an entry.
Yesterday we were able to take two trades, a short for GBPAUD and a short for AUDCAD. Since AUDCAD looked more promising, we got out of GBPAUD in -13 pips loss and kept AUDCAD which went as deep as +54 pips of profit. The rest of the week has a few fundamental events sprinkled in, but nothing too major. The last major event will occur later today when the RBNZ announces its monetary policy. Almost all the forecasts suggest that the rates will remain unchanged. As always, be safe and trade responsibly!
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