Euro accelerates decline on preliminary data on business activity in Germany

• The index of business activity in the manufacturing sector (PMI) of Germany is 56.8, the forecast is 57.9.
• Index of business activity in the German services sector is 52.1, the forecast is 53.1.

The index of business activity in the German manufacturing sector unexpectedly declined in May after four weeks of movement near the level of 58.1, thereby increasing concerns about this indicator in Germany.

Fig. 1: Graph of the index of business activity in Germany

Also, the pressure on the euro was strengthened by the resumption of political risks in Italy and the overall recovery of the American following Trump’s comments, which returned negative sentiment to the market.

The pair EUR/USD technically accelerated the decline on the development of the figure “head and shoulders“, thereby confirming the resumption of a two-month downtrend on the renewal of the psychological minimum at 1.1700. Further reduction of this pair will be very difficult due to the oversold of the euro and this psychology.

Fig. 2: EUR/USD. Current price – 1.1710

Also, read: “Momentum Eldera – Profitable Forex Strategy”

Hanzenko Anton