Eurozone PMI Disappoints, Pushes EUR Lower

Contrary to expectations that the Eurzoone PMI will improve in October, the data released by Markit Economics shows another disappointment for the EUR bulls.

  • Markit Services PMI 51.8 vs 51.9 expected
  • Markit Manufacturing PMI 45.7 vs 46.0 expected
  • Markit PMI Composite 50.2 vs 50.3 expected

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Poor PMI readings have pulled all EUR pairs lower, as expected. EURUSD has moved around 20 lower seconds after the data came out and it trades around 1.1130 now, having made a 1.1162 intraday high just an hour ago.

Looking at other EUR pairs, EURJPY has 20 pips lower as well, after it has enjoyed a great spell in the recent days. Similar to EURUSD, EURJPY is now trading below the 121.00 handle after it posted an intraday high of 121.38.

The pair is in a clear bullish mode having gained around 3% in October. Bulls are targeting the resistance zone of 121.80 – 122.20, which is constituted of the 161.8% Fibonacci resistance and the 200 WMA.

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EURJPY hourly chart

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