EUR/USD now finding support around 61.8% Fibo level

Daily chart

EURUSD D1 (03-01-2016 2214)

So now the currency pair is finding support around 1.0845 – 61.8% Fibo retracement level of 1.0517-1.1376.

The manufacturing figures – Markit and ISM –  beat estimates, but remained in contraction territory. Still, the manufacturing recession talk was oversold on the wires and hence even a slightly better-than-expected figure is enough to trigger speculation the sector bottomed out in February.

Not surprisingly then, the USD has strengthened along with a sharp rise in the treasury yield.

 

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