French manufacturing and services growth cooled more than economists forecast this month as new business stagnated and employment fell. Flash France Composite Output Index fell to 50.5 (51.8 in March), Flash France Services Activity Index slipped to 50.3 (51.5 in March), Flash France Manufacturing Output Index dropped to 51.6 (53.3 in March) and Flash France Manufacturing PMI fell to 50.9 (52.1 in March) - all the indices fell to 2-month low. In Germany the PMIs rose to 2-3-month high.

Flash Germany Composite Output Index is at 56.3 (54.3 in March), Flash Germany Services Activity Index is at 55.0 (53.0 in March), Flash Germany Manufacturing PMI is at 54.2 (53.7 in March) and Flash Germany Manufacturing Output Index is at 58.8 (57.0 in March).

Technical view-

EUR/USD is trading at 1.3819 in Asia. In yesterday's trading session the pair came out from the 8-day trading range, but it was unable to cross the 1.3864 (April 17 high). The pair has been in an uptrend from 1.3673 levels. On the upside, the pair is facing stiff resistance at 1.3864 and 1.3906 levels. On higher levels the pair faced selling pressure. The new bull run will start only above 1.40 levels. Bears can enter shorts on every rise with sl 1.40 on cb. Bulls can enter longs only above 1.3864 for 1.3906 and 1.3934 levels for 2-3 days perspective. Until the pair crosses the 1.3906, we are still expecting the 1.3643,1.3615, and 1.3580 levels.

On the down side, the strong support exists at 1.3796 (50SMA) levels. A day close below the 50 SMA, the second phase of bear wave will start towards 1.3737 and 1.3673 first and later more deep levels will be added. In the daily chart, RSI is not favoring longs. If the pair closes above 1.3864 this week, a slight bullish pattern will form for the next week towards 1.3906, 1.3948, and 1.3964 levels.

Intraday-

The pair has been facing strong resistance at 50SMA (1.3820) in the H4 chart. As of now, the pair is forming a double high at 1.3820 on H4 chart. Speculators can buy above 1.3820 for targets at 1.3846, 13850 and 1.3855 levels. Partial book profits or trailing sl is the best method for safe trading. The pair will gain strength only above 1.3864 levels. While I am preparing this article, it is trading at 1.3819 levels. On the down side the pair has small support at 1.3810 levels and the major support exists at 1.3780 levels. I expect the pair will come back again to the support levels (1.3780-1.3775) before any further up move.

Buy above 1.3820 for targets at 1.3846, 1.3850, 1.3855, and 1.364. Add more above 1.3864 for 1.3906.