Release Time:2018-11-26 03:51
EURUSD (1.1352) • EURUSD slid sharply in European trade following the release of weaker than expected preliminary PMI data; French data were slightly more robust overall but German data reflected a broader slowing in growth trends. The Eurozone composite PMI reading slid to 52.4 in Nov, well below market expectations for a modest decline from Oct’s 53.1 to 53.0. EURUSD fell from the 1.1420 area on the release to the mid 1.13s, a sizeable drop in response to the data, the tone of which challenge somewhat the still broadly positive view of the growth outlook advanced by the ECB.
EURUSD short-term technicals: Neutral/bearish—EURUSD just can’t hold a bid. Early week price action (the spot sell-off Tuesday especially) leaves a weak look to the short-term chart picture and suggests firm selling interest in the upper 1.14 area. We think the broader outlook may be turning a little less negative, however, and rather feel that the EUR should see better support emerged around the 1.13 level. A sustained push above 1.15 is needed to really lift prospects, however.