EUR/USD: The bias remains strongly bearish despite the strong PMI German

© O Financista.

By David Wagner

The index (PMI) preliminary from Germany for the month of January proved better than expected this morning, which supports slightly the Euro on the Forex, but the underlying trend remains very much to the downside after the dip of yesterday.

Index PMI manufacturing of Germany is, in fact, stood at 45.2 points versus 44.5 expected and 43.7 previously, while the service PMI jumped to 54.2 points, compared to 53 in advance and 52.9 previously. In the end, the composite PMI appears to be 51.1 points versus 50.5 expected and 50.2 previously.

These figures were all the more a pleasant surprise that the PMI of France published a little earlier were more mixed, with manufacturing PMI slightly above expectations, but a PMI services and composite PMI below consensus.

What influence on the EUR/USD ?

In the Face of these figures, there has been a slight reaction upward trend of the EUR/USD pair, but the pressure remains to the downside after the plunge following the ECB meeting yesterday.

We remind you that Christine Lagarde has avoided any comment hawkish despite the improvement in the economic data since the last ECB meeting, which seems to have disappointed investors.

From a technical point of view, it will be recalled that the pair has broken below its moving average of 100 days yesterday, which is a bearish signal major. Today, we will monitor the low of yesterday at 1.1035 and the threshold of major psychological of 1.10 as the next targets potential sellers.

The increase, he should be able to see a return of the EUR/USD pair above the moving average 100 days now at 1.1065 for the downward pressure begins to decrease.

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