FXstreet.com (Barcelona) - The EUR/USD plunged strongly on the disappointing preliminary release of the German Markit PMI for October, having fallen from 47.4 to 45.7, instead of improving to 48 as expected. The services figure also dropped, from 49.7 to 49.3 (consensus of 50).
Facing strong resistance at 1.2995/1.3000, the pair gave way to an ongoing selloff, currently at 1.2970. The EMU Markit PMI is still due to be released. The French manufacturing PMI dropped even more than expected, from 50 to 43.5 (consensus of 44), although the services figure rose from 45 to 46.2 (consensus of 45.5).
“The 200 day ma has been the focus of a lot of attention recently and failure here would be viewed as psychologically negative”, wrote analyst Karen Jones, adding that a breach would imply that the market had topped and signal losses to the 1.2738 and 1.2605, (38.2% and 50% retracements).
Facing strong resistance at 1.2995/1.3000, the pair gave way to an ongoing selloff, currently at 1.2970. The EMU Markit PMI is still due to be released. The French manufacturing PMI dropped even more than expected, from 50 to 43.5 (consensus of 44), although the services figure rose from 45 to 46.2 (consensus of 45.5).
“The 200 day ma has been the focus of a lot of attention recently and failure here would be viewed as psychologically negative”, wrote analyst Karen Jones, adding that a breach would imply that the market had topped and signal losses to the 1.2738 and 1.2605, (38.2% and 50% retracements).
