EURUSD Takes a Breath After Better German Manufacturing PMI
EURUSD add over 20 pips after stronger than expected German Manufacturing PMI. For February the Manufacturing PMI came in at 47.8, topping the expectations of 44.8. The PMI signals modest growth of the German economy despite the recent slump in exports. The manufacturing sector in Germany moved closer to stabilisation, with the data indicating a slower fall in output, employment and new orders.
The Germany Services PMI came in at 53.3 below the estimates of 53.8 in February. The Composite PMI came in at 51.1 above the forecasts of 50.8. Growth of output was driven mainly by the service sector where business activity continue to rise at a solid pace. The rate of decline in the manufacturing production eased for the fourth time in the last five months to the weakest since May 2019.
EURUSD is 0.28% higher at 1.0814 boosted by the stronger German manufacturing PMI. The technical outlook is still negative for the pair, but for the short term there is an improvement as the EURUSD price breaks above the 100-hour moving average. The pair first needs to stabilize above the 1.08 mark and then to settle above the yesterdays high if the bulls want to make a rebound.
On the upside, initial resistance for the pair stands at 1.0819 the daily high. A break above might meet the next resistance at 1.0850 the high from February 17th. Next resistance level to watch on the upside is the February 12th high at 1.0925.
On the other hand, intraday support stands first at 1.08 psychological mark and then at 1.0782 the daily low. If the pair breaks below the next target would be the 1.0777 the low from yesterday’s trading session and then at 1.0708 low from April 20, 2017.