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, on the first business day after the month ends.
Last Read :51.8
Expectations : 51.8
Actual : 51.4
Volatility : Various from month to month !! (sometimes high volatility , sometimes medium volatility).
Market Impact :A reading between 51.8 : 50.0 should bring light bearish move .
Technical Outlook : Intraday outlook in EURUSD remains on the downside as long as resistance 1.2513/1.2538 holds on a 4 hour closing basis , support comes at the 1.2438 levels , a cut will open the 1.2375 levels , further downside will aim the 1.2300 levels ahead of the 1.2240 levels.On the upside , resistance comes at the 1.2513 levels ahead of the 1.2538 levels , break of 1.2538 on a 4 hour basis will extend rebound towards main resistance at the 1.2630 levels before the next big fall ?!!
Overbought zone : 1.2513/1.2538 levels
Support and resistance : 1.2240 , 1.2300 , 1.2375 , 1.2438 , 1.2513 , 1.2538 , 1.2630 (main) , 1.2685 , 1.2725 , 1.2770