EURUSD: Euro remains below 1.11 despite PMIs beat
|Traders hesitated with buying the shared currency on Thursday and the EURUSD pair stayed below the 1.11 level, near 3-week lows, amid worsening risk appetite.
Earlier in the day, German manufacturing PMI improved slightly and printed 43.6 for August, up from 43.2 in July, but still very deep in the contraction territory. The services sector slowed a bit, from 54.5 to 54.4. Both numbers came above market expectations.
The euro zone's figures were also better than forecast, with the manufacturing sector improving from 46.5 to 47.0, while the services PMI edged higher to 53.4 from 53.2. As previously said, the EURUSD pair failed to move higher after these numbers and remained offered on any small rallies.
Meanwhile, the US manufacturing PMI for August declined into recession territory and printed 49.9, down from 50.4 in July. The services sector also slowed notably, from 53.0 to 50.9. The greenback lost some ground after these weak numbers.
The technical analysis points to choppy trading with some bearish tendencies as the pair is being offered on any rallies. Should the euro decline below 1.1060, we could see a downward movement toward the current cycle lows near 1.1020.
On the upside, if the pair rises above the strong resistance of 1.11100, bullish momentum could strengthen, targeting 1.1130 or possibly 1.1160
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.