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Forex pairs in this Article » EUR/USD (Barcelona) - The EUR/USD went through a very volatile day Thursday, but the nest result was that it finished right around the flat line for the session. The intraday rebound looked suspiciously like a corrective move higher to technicians.

EUR/USD rebounded from session lows on good PMI data

Better-than-expected German and EuroZone PMI spurred on a corrective rally in EUR/USD starting at about 10:30 GMT. That rally took a classic “abc” pattern that appears to have peaked out at 1.3372 at around 16:40 GMT. Since then, the action has been sideways to lower and just recently has picked up some momentum on the downside.

Friday, traders and analysts will be focused on the real-time commentary emanating from the Jackson Hole Symposium. Additionally, however, there will be some focus diverted to German GDP and import prices as well as US New Home Sales data.

EUR/USD may have completed an “abc” upside correction Thursday

Technicians are still calling for a thrust lower in the EUR/USD down to around the 1.24 – 1.25 area. That call depends on the idea that EUR/USD failed at key macro correction resistance at 1.34 – 1.35. Shorter-term, EUR/USD will have as its task the conquering of resistance at 1.3372. The support level to watch is 1.3325 – a break below which will confirm the 1.3372 top was “the” top for the most recent upside try.
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