After the PMI manufacturing news broke, the Euro (EUR) strengthened against the US Dollar (USD). After September 2019, the pair has continued to escalate volatility in price movement one week or another.

It stayed 49.2 this month, with a recorded figure of 48.9 the month before, to somehow meet the expectations of the economists, which was 49.4.

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 that 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).

The pair is currently trading around 1.1005, facing the number of resistance levels including major horizontal and trendline resistance. The pair seems to be struggling to break through the levels of resistance and gain a bullish position.

Whereas, The Market PMI composite news also suggests an unfavorable economic condition for the pair with a reading of 50.3, this month as compared to 50.6, the previous month. The reading remained lower than the consensus of the market leaders which was 50.9.

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 50 is supposed to have a positive impact and vice versa.

Conclusion

It may be beneficial to exchange EURUSD for a short-term position, but it may not work to open a long-term position.