EUR/USD falls after weak PMI data. Scotiabank economists analyze the pair's outlook.
Daily and weekly trend momentum signals are bullish
France's preliminary March data was generally weaker than expected, while German manufacturing data (41.6) was also well below forecasts and the February result. Preliminary Eurozone services and composites data strengthened more than expected, but manufacturing data fell to 45.7 (below estimates and weaker than February).
EUR/USD's losses from the daily high have slowed the pair's near-term rebound, but the technical background for the Euro remains bullish following this week's solid recovery from the low 1.0800 zone (test of the 200-day SMA).
The daily and weekly trend momentum signals are bullish, suggesting that The Euro should find stable support on minor declines.
Resistance is at 1.0975/1.0980.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
