Find out the expected economical impact of today’s two major news releases “Caixin China Services PMI™” and “Euro Zone Services PMI”, and technical analysis on EUR/JPY.
This article is originally referred from TitanFX Technical Analysis.
- The Euro traded down against the Japanese yen and looks set for more losses in the near term.
- There was a contracting triangle pattern formed on the hourly chart of the EURJPY pair, which was broken to clear the way for more declines.
- In the Euro Zone, the PMI service will be released by the Markit Economics, which is forecasted to remain at 52.7 in July 2016.
- Moreover, the Euro Zone Retail Sales will be released by the Eurostat, which is forecasted to increase by 1.7% in June 2016.
EURJPY TECHNICAL ANALYSIS
The Euro declined recently against the Japanese yen and broke the 114.00 support area. It looks like the EURJPY pair remains a sell if it manages to recover in the short term.
There was a contracting triangle pattern formed on the hourly chart of the EURJPY pair, which was cleared recently and ignited a move towards the 113.00 level.
The pair is currently correcting higher, but may face sellers near the 50% Fib retracement level of the last drop from the 114.81 high to 113.00 low.
EURO ZONE SERVICES PMI
Today in the Euro Zone, the Services PMI, which is an indicator of the economic situation in the Euro Zone services sector and captures an overview of the condition of sales and employment will be released by the Markit Economics.
The forecast is slated for no change from the last reading of 52.7. Similarly, the German Services PMI is expected to remain at 54.6 in July 2016.
Furthermore, the Retail Sales, which is a measure of changes in sales of the Euro zone retail sector will be released by the Eurostat. The market is expecting a rise of 1.7% in sales in June 2016, compared with June 2015. Let us see how the results shape up and impacts the Euro in the near term.
CHINESE CAIXIN CHINA SERVICES PMI
Earlier today, the Caixin China Services PMI™, which is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies was released by Markit Economics.
The forecast was slated for a minor decline in the PMI, but the result was negative, as there was a decline of 1 point from 52.7 to 51.7 in July 2016. However, the market sentiment was not affected much after the release.
Original Source: TitanFX Technical Analysis