Euro fell across the board as weak PMI data further soured sentiment
The Euro fell across the board, hit by weaker than expected PMI data from the biggest Eurozone economies.
German data were in focus today, with Manufacturing PMI falling below expectations in Apr (44.5 vs 45.0 f/c).
Also, French Manufacturing PMI fell below 50 threshold (Apr 49.6 vs 50 f/c) and EU Manufacturing PMI also missed in Apr (47.8 vs 47.9 f/c).
Data signal contraction, especially in the biggest EU economy – Germany, with better than expected Services PM )Germany, France) producing no positive impact.
The single currency was down 0.3% against the dollar and yen and lost approx. 0.15% against pound after data release.
Fresh weakness hit one-week low at 1.1243, marking over 50% retracement of 1.1183/1.1323 upleg) and generated initial signal that corrective phase from 1.1183 might be over.
Falling thick daily cloud continues to weigh, as bullish momentum is fading and daily MA’s turning to bearish setup.
Daily close below broken pivotal support at 1.1270 (10SMA / Fibo 38.2% of 1.1183/1.1323) would add to negative signals, while extension and close below 1.1237 (Fibo 61.8%) is needed to confirm reversal and lower platform at 1.1323.
Daily cloud base (1.1295) and falling 55SMA (1.1304) remain key barriers.
Res: 1.1270; 1.1295; 1.1304; 1.1316
Sup: 1.1253; 1.1243; 1.1237; 1.1216