EUR/USD Outlook: Euro fell across the board as weak PMI data further soured sentiment
|The Euro fell across the board, hit by weaker than expected PMI data from the biggest Eurozone economies.
German data were in focus today, with Manufacturing PMI falling below expectations in Apr (44.5 vs 45.0 f/c).
Also, French Manufacturing PMI fell below 50 threshold (Apr 49.6 vs 50 f/c) and EU Manufacturing PMI also missed in Apr (47.8 vs 47.9 f/c).
Data signal contraction, especially in the biggest EU economy – Germany, with better than expected Services PM )Germany, France) producing no positive impact.
The single currency was down 0.3% against the dollar and yen and lost approx. 0.15% against pound after data release.
Fresh weakness hit one-week low at 1.1243, marking over 50% retracement of 1.1183/1.1323 upleg) and generated initial signal that corrective phase from 1.1183 might be over.
Falling thick daily cloud continues to weigh, as bullish momentum is fading and daily MA’s turning to bearish setup.
Daily close below broken pivotal support at 1.1270 (10SMA / Fibo 38.2% of 1.1183/1.1323) would add to negative signals, while extension and close below 1.1237 (Fibo 61.8%) is needed to confirm reversal and lower platform at 1.1323.
Daily cloud base (1.1295) and falling 55SMA (1.1304) remain key barriers.
Res: 1.1270; 1.1295; 1.1304; 1.1316
Sup: 1.1253; 1.1243; 1.1237; 1.1216
Interested in EURUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.