Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Euro Rebounds After Poor Eurozone PMI Data

By InstaForex GroupForexJun 24, 2022 03:47AM ET
Euro Rebounds After Poor Eurozone PMI Data
By InstaForex Group   |  Jun 24, 2022 03:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The EUR/USD pair declined and later on rebounded to the levels it opened yesterday morning. Such developments came as no surprise bearing in mind forecasts of flash PMIs. However, the currency pair made a broader move than expected.

The PMIs for both Europe and the US were reported much worse than projected. The first portion of data was for the eurozone. The manufacturing PMI dropped to 52.0 from 54.6 whereas economists had predicted a more modest decline to 54.0.

Likewise, the services PMI fell to 52.8 from 56.1, much sharper than the forecast for 55.8. As a result, the composite PMI slumped to 51.9 from 54.8, much worse than the expected dip to 54.2.

EZ composite PMI.
EZ composite PMI.

The data for the US was no better. For example, the manufacturing PMI plummeted to 52.4 from 57.0. It fell short of expectations of a decrease to 56.0. The services PMI contracted to 51.6 from 53.4 whereas the forecast was about 53.0. In turn, the US composite PMI dropped to 51.2 from 53.6, weaker than the expected 52.8.

US composite PMI.
US composite PMI.

Outlook And Trading Tips - EUR/USD

The economic calendar is absolutely empty today. Therefore, market developments will be driven entirely by technical factors. Traders again cut short positions on EUR/USD at about support of 1.0500. This caused a slowdown in the downward cycle and a logical rebound.

EUR/USD 4-hour chart.
EUR/USD 4-hour chart.

The RSI technical instrument is fluctuating within the deviations of a 50-day moving average on the 1-hour and 4-hour charts. It means sideways trading. The D1 RSI is moving in the indicator’s lower area of 30/50. It signals a downtrend.

Moving averages on the H1 and H4 Alligator are intersecting, thus indicating the flat market. The D1 Alligator signals the downtrend in the medium term. EUR/USD is oscillating in the range between 1.0500 and 1.0600. The move is closely watched by speculators.

For the time being, the bull and bear forces are in equilibrium. Once the currency pair is in motion, the flat market will be over. As soon as EUR/USD gains momentum, it will escape the trading range in a certain direction. The price will generate a trading signal at the moment it settles beyond a certain border on the daily chart.

Complex indicator analysis provides a buy signal for intraday trading and for the short term because the price rebounded off 1.0500. Technical indicators suggest the downtrend in the medium term.  


Euro Rebounds After Poor Eurozone PMI Data

Related Articles

Kenny Fisher
Australian Dollar Roars Higher By Kenny Fisher - Aug 08, 2022

The Australian dollar continues to exhibit sharp volatility. AUD/USD declined by 0.82% on Friday but has bounced back today, soaring 1.15%. Currently, the pair is trading at...

Al Brooks
EUR/USD: Breakout Likely By Al Brooks - Aug 08, 2022

The EUR/USD has continued to go sideways in a tight trading range which is now a triangle. There will likely be a breakout soon, but the direction is unclear. The bulls are...

Euro Rebounds After Poor Eurozone PMI Data

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email