EUR/USD trades soft near 1.08 on weaker-than-expected PMI data. Economists at Scotiabank analyze the pair’s technical outlook.
Support is 1.0750/1.0775
Preliminary Eurozone PMI data reflected soft but slightly better than forecast manufacturing trends in Germany and France. However, both countries saw much weaker than expected services activity this month, pushing the Eurozone services index down to 48.3, versus 50.5 expected and 50.9 in July. The composite index dropped to 47 from 48.6 (a milder drop to 48.5 was expected).
Steady EUR losses are extending to near the 200-Day Moving Average (1.0799).
The EUR/USD pair has given back nearly 3/4 of the May/July rally from 1.0635/1.1275 and weakness through the mid/upper 1.08s leaves the technical undertone here looking soft.
Support is 1.0750/1.0775. Resistance is 1.0835/1.0845.
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