EUR/USD: Weakness through the mid/upper-1.08s leaves the technical undertone looking soft – Scotiabank

FXStreet Insights Team FXStreet

EUR/USD trades soft near 1.08 on weaker-than-expected PMI data. Economists at Scotiabank analyze the pair’s technical outlook.

Support is 1.0750/1.0775

Preliminary Eurozone PMI data reflected soft but slightly better than forecast manufacturing trends in Germany and France. However, both countries saw much weaker than expected services activity this month, pushing the Eurozone services index down to 48.3, versus 50.5 expected and 50.9 in July. The composite index dropped to 47 from 48.6 (a milder drop to 48.5 was expected).

Steady EUR losses are extending to near the 200-Day Moving Average (1.0799).

The EUR/USD pair has given back nearly 3/4 of the May/July rally from 1.0635/1.1275 and weakness through the mid/upper 1.08s leaves the technical undertone here looking soft.

Support is 1.0750/1.0775. Resistance is 1.0835/1.0845.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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