The Euro (EUR) slides downwards against the US Dollar (USD) after the manufacturing PMI news broke. The pair continues escalating downside one week or another since June 2019.
With a reported figure of 47.6 the month before, it remained 46.4 this month, meeting the economists’ expectation which was 47.6 too.
The stats concerning Manufacturing Purchasing Index – (PMI) put forward by the Markit Economics represents overall business conditions in the manufacturing sector of the country since it constitutes a large part of total GDP.
It is to be noted that the manufacturing PMI is an important indicator which unveils the overall economic condition in the Euro Zone. Usually, a result above 50 stimulates a bullish market for the Euro (EUR), whereas a result below 50 alarms for a bearish trend for Euro (EUR).
Currently, the pair is being traded around 1.11192, just falling below two immediate resistance levels including the major horizontal and trendline resistance. It seems that the pair will struggle to break through the resistance levels and rise up.
The Market PMI composite news also suggests a favorable economic condition for the pair with a reading of 53.6, this month as compared to 52.8, the previous month. The reading remained higher than the consensus of the market leaders which was 52.7.
The Market Economics release monthly PMI composite stats on the manufacturing and service sectors after taking into account the contribution made by each sector towards the total manufacturing output of the country. A reading above than 50 is supposed to have a positive impact and vice versa.
Trading EURUSD for a short term position can be profitable but opening a long term position might not work.