EURUSD Bounce From Daily Lows After Better EU Manufacturing PMI’s
EURUSD pare some of the early losses after data showed that the manufacturing sector continues the recovery in Europe. Services sector lagging as travel and entertainment still face restrictions.
Germany and France Manufacturing PMI Beat Expectations
Germany Manufacturing PMI came in at 56.6 in September topping the expectations of 52.5 as global demand picks up. On the other hand, the Services PMI registered in at 49.1 below the estimates of 52.9 as the weakness in local demand slow down; The Germany PMI Composite came in at 53.7 also below the expectations of 54.2.
France Manufacturing PMI reported at 50.9 beating the estimates of 50.5 in September. France Services PMI registered in at 47.5, below the forecasts of 51.5 and the PMI Composite came in at 48.5, below the expectations of 51.9.
European Monetary Union Preliminary Manufacturing PMI rise to 53.7 in September beating the expectations of 51.9, while the EMU Services PMI dropped to 47.6 below the forecasts of 50.5 pressured by the recent increase in new coronavirus infections.
The Spain Gross Domestic Product (GDP) came in at -21.5% slightly better than the forecasts of -22.1% in the second quarter.
EURUSD Reaction to Manufacturing PMI
EURUSD managed to bounce from the daily lows at 1.1672 after the release of stronger than expected Manufacturing PMI’s from Europe. As of writing the pair is 0.13% lower at 1.1693.
EURUSD Price Daily Technical Analysis
EURUSD continues lower for the third trading session as the correction from 1.20 accelerates after the pair breached below the upward trendline that started since the May lows. On Monday the pair also breached below the 50-day moving average cancelling the bullish momentum.
Support for the EURUSD pair stands at 1.1672 the intraday low. A break below might challenge 1.1640 the low from July 27. More bids might emerge at 1.1584 the low from July 24.
On the other side, immediate resistance stands at 1.1710, while a break above would meet the critical 50-day moving average resistance at 1.1775.