The correction smoothly replaced three days of sales in the main currency pair, but the rising impulse isn’t strong enough.
On Wednesday afternoon, the EUR/USD pair perseveres in its attempts to recover after three trading sessions of sales. The current quote for the instrument is 1.1208.
A technical signal alone won’t be enough here, given that the statistics is not in favor of the Euro. The statistics from Markit Economics published today showed that the PMI in September decreased up to 52.6 points after 52.9 points the month before. The current numbers are the lowest over the last 18 months or even more.
The components of the report indicate that the business activity index in the Eurozone in September decreased up to 52.2 points against 52.9 points in August. This data is not much better than the initial calculations.
Today’s report may indicate the slowdown in the business activity in the entire Eurozone due to different reasons, such as the Brexit of course, and elections in Germany and France. In the mid-term, the Eurozone economy has too many “ifs”, not relating to financing only. All these factors force business to avoid risks.
Without a new catalyst, the EUR/USD pair is very unlikely to fix above 1.1235.
RoboForex Analytical Department
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