Risk sentiment is once again leading the way across the board, with the dollar under pressure amid increasing concerns over Chinese economic slowdown.
European equities opened lower, following another round of losses in the Shanghai Composite. The Chinese index is down 1.23% on the day, following the release of the local manufacturing PMI for August, at 47.3, showing the sector remains in contraction mode. The Services PMI printed 51.5 against previous 53.8
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In the EU, the release of the manufacturing data for August resulted mixed, with France and Greece still in contraction mode, and Germany beating expectations, this last up to 53.3. The final reading for the EU stands at 52.3 slightly below expectations of 52.4.
The EUR/USD pair however, posted a fresh 3-day high set at 1.1331, and now struggles around the 61.8% retracement of the last two weeks run, at 1.1280, now the immediate support. The 4 hours chart presents a mild positive tone, as the price advanced above its 20 SMA that anyway maintains a bearish slope, whilst the technical indicators are grinding higher above their mid-lines. Should the price hold above it, chances are of a bullish continuation, towards 1.1360, the 50% retracement of the same rally.
Below 1.1260, on the other hand, the intraday risk turns towards the downside, with the pair then positioned to retest the 1.1200/20 price zone.
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