The euro has fallen on the data on business activity in Germany

• German Manufacturing PMI (Mar), fact 44.7, forecast 48.0.
• German index of business activity in the services sector (Mar), fact 54.9, the forecast 54.8.
• Manufacturing PMI (Mar), fact 47.6, forecast 49.5.
• Markit Composite Business Activity Index (PMI) (Mar), fact 51.3, forecast 52.0.
• The index of business activity in the services sector (Mar), fact 52.7, forecast 52.7.

Data on business activity in the manufacturing sector (PMI) in Germany declined to six-year lows, putting significant pressure on the single currency. The dynamics of this indicator in Germany and the Eurozone shows a steady decline since the beginning of 2018. Against the background of a slowdown in employment growth, these figures indicate a significant slowdown in the eurozone economy.

Fig. 1.  German business activity index in the manufacturing sector (PMI) chart

The euro has plummeted across the market. EUR/USD has updated the weekly low at 1.1290. This virtually completely broke the technical picture of the market, pointing to the resumption of the downward trend in 2018.

The EUR/USD pair formed a reversal from the 1.1450-00 zone, but it is limited by the oversold level in the decline, keeping the potential for decline at the support levels: 1.1250 and 1.1230.

Fig. 2. EUR/USD chart. Current price – 1.1290

Read also: “Candlestick analysis. Continuation patterns”

Hanzenko Anton

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