The week started in slow motion, with the EUR/USD pair confined to a 50 pips range, and having met selling interest on advances towards 1.1050. Chinese data failed to boost market sentiment, as the official manufacturing PMI remained below 50 in October, matching September reading of 49.8. The services sector grew less than previously, resulting at 53.1 against September figure of 53.4. The composite figure, which shows a snapshot of operating conditions in the manufacturing economy – posted 48.3 in October, up from 47.2 in September. Asian shares fell, and European ones are struggling around their opening levels.
German final manufacturing PMI resulted at 52.1, whilst the EU printed 52.3, both above expectations and previous. Except for France number, manufacturing seems to have started with a strong footing in the Q4. Later on today, the US will release its own PMI figures and some construction data, all of which may support some greenback rallies if the results beat expectations.
View the Live chart of the EUR/USD
The common currency remains subdued, unable to rally and with the EUR/USD pair trading above a flat 20 SMA, whilst the technical indicators continue retreating from overbought levels, limiting chances of a bullish run. A decline through the 1.1000 figure should see the pair accelerating its decline towards the 1.0950 region, with a break below it exposing last week lows at 1.0896. The pair has a strong resistance around 1.1080, and only a clear break above it can favor a rally up to the 1.1120/30 price zone.
Latest updates on the EUR/USD Forecast
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