EURUSD is under selling pressure after dismal PMI data from the EU. Germany’s April flash manufacturing PMI came in at 34.4 below the expectations of 39.0; the previous reading was at 45.4. The Services PMI came down to 15.9 below the expectations of 28; the previous reading was at 31.7. The composite PMI also slumped to 17.1 well below the expectations of 28.5, and the previous reading was at 32.
The France PMI’s data were the lowest on record amid the coronavirus lockdown. The French Manufacturing PMI for April came in at 31.5 below the expectations of 37.0; the March reading was at 43.2. The services sector account for most of the damage. The Services PMI came down to 10.4 below the market consensus at 24.5; March reading was at 27.4. The Composite PMI registered at 11.2 below the expectations of 24.5, and below the previous month reading at 28.9.
The eurozone Manufacturing PMI came in at 33.6 below the expectations of 39 and the March reading at 44.5. The services PMI came down to 11.7, the previous reading was at 26.4, while the composite PMI registered at 13.5; the previous reading was at 29.7.
Analysts hope that an ease to restrictions due to coronavirus outbreak might signal a rebound in May PMI’s in all sectors.
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EURUSD Price Resistance and Support
EURUSD is 0.27 lower at 1.0793, as the pair give up early gains after the dismal European PMI’s. The euro holds relatively well as the manufacturing and services sectors plunged in France and Germany. Traders await the U.S. initial jobless claims later today, and if the data shows improvement, then we might see even lower levels for EURUSD.
On the downside, first support for EURUSD stands at 1.0784 the daily low. Next support area would be met at 1.0720 the low from March 24 trading session. If EURUSD breaks that support level, then the next target for sellers is at 1.0637 the March 23 lows.
On the upside, the first resistance for EURUSD pair stands at 1.0834 the daily high. If the pair breaks that resistance then the next target is at 1.0885 the high from yesterday’s trading session. The next resistance for EURUSD is at 1.0954 the 50-day moving average.
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