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