EURUSD under pressure ahead of German Manufacturing PMI (Oct)

EURO data
EURO data

The German Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, a reading above 50 indicates expansion in the sector; below indicates contraction, traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

Usual Effect: A high reading or a better than expected number is seen as positive for the EUR, while a low reading is negative.

Frequency: Released monthly, around 3 weeks into the current month.

Last Read : 49.9

Expectations : 49.5

Volatility : High Volatility

It will be be published today at 07:30 GMT  , you can follow this event

Trend Direction : Downward

Support and resistance : 1.2485 ,1.2570, 1.2620 , 1.2705 , 1.2740 , 1.2807 , 1.2886

Recommended Strategy : Sell at resistance levels.

Forecast : we have 3 scenarios for the EURUSD :

  • A reading between 49.0 : 50.0 will bring sideways move within support and resistance range , 1 level could be tested (broken) up or down !
  • A reading below 49.0 is supposed to bring bearish move , 1 or 2 support level(s) could be broken .
  • A reading above 50.0 is supposed to bring rebound before the next fall , 1 or 2 resistance level (s) could be tested !