EURUSD Runs Out Of Steam As Germany Manufacturing PMI Disappoints


EURUSD correction from two-week highs continues for the third consecutive session, despite stronger retail sales from Germany. Germany Retail Sales registered in at 1.2%, topping even the most optimistic expectations of 0% in February, the yearly reading came in at 6.4% beating the expectations of 1.5% after a sharp increase in food and toilet paper.

The manufacturing sector in Europe continues to disappoint, the Germany Manufacturing PMI came in at 45.4 (two-month lows), below the forecasts of 45.5 in March, the February reading was at 45.7. The France Manufacturing PMI came in at 43.20 (86 month lows) above the expectations of 42.9 in March.
Meanwhile, the Sentix Euro Break-up index jumped over 130% at 13.4 as Germany rejects the idea for coronavirus bonds.

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EURUSD Levels to Watch

EURUSD is 0.85 lower at 1.0937, breaking below the 50-day moving average and cancelling the recent positive momentum. The technical outlook has turned bearish now while a settlement today below the 50-day moving average might be the start of a new leg lower.  

On the downside, initial support for EURUSD stands at 1.0933 the daily low. Next support level would be met at 1.0873 the low from March 26. If the pair breaks that support, then the next target for bears is at 1.0762 the March 25 lows. 

On the other side, the first resistance for the pair stands at 1.1039-1.1044 zone, the daily high and the 100-day moving average. If the pair breaks that resistance then the next target is at 1.1077 the 200-day moving average. The next resistance for the pair is at 1.1143 the high from March 30.  

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