Euro Weakens as German And French PMI Disappoint, Short-term EUR/USD Downtrend in Focus
EUR/USD slipped in early Monday's trade as French and German PMI numbers for June came in lower than expected.
EUR/USD dropped to 1.3592 from near 1.3607 before bouncing back near the 50-period moving average of 1.3597 on a 30-minute chart.
France's manufacturing PMI fell to 47.8 in June from 49.6, flash estimates by Markit on Monday showed, analysts were expecting a more modest fall to 49.5. Services dropped to 48.2 from 49.1 versus a consensus of 49.1.
For Germany, the services PMI dropped to 54.8 from 56.0 compared to market estimate of 55.7. The manufacturing number increased to 52.4 from 52.3, but lower than the consensus at 56.0.
EUR/USD is now testing the 50% Fibonacci retracement of the 17 June to 19 June uptrend, coming in at 1.3590.
The next level on the downside is 1.3584 ahead of 1.3577, the 61.8% level, and 1.3564, Friday's low.
On the higher side, first focus is on 1.3618, the 23.6% level, ahead of 1.3635, Friday's early morning high.
A fall below 1.3577 will resume the downtrend since Thursday and on the higher side, break of 1.3618 will bring the uptrend since Tuesday back in focus.
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