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Disappointing EMU PMIs push EUR/USD below 1.2600 - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that the lower than expected Eurozone PMI Manufacturing numbers for September weighed on the EUR/USD which dropped below the 1.2600 level.

Key quotes

"More pressure on the ECB indeed for tomorrow, let’s see if Draghi decides to keep on backing up his words with action."

"In the meantime, the EUR/USD posted a daily low so far of 1.2584, trading now back around the 1.2600 figure."

"The technical picture continues to be clearly bearish according to the 4 hours chart, as indicators managed to correct all of their oversold conditions reached on Tuesday, while price failed to extend beyond the 1.6230 price zone."

"The same chart shows price below a strongly bearish 20 SMA and indicators below their midlines, with both momentum and RSI heading south."

"A daily descendant tend coming from 1.2880 price zone stands around 1.2650, a few pips below mentioned 20 SMA, and recoveries up to that level should be seen as selling opportunities."

"Renewed selling pressure on the other hand, pushing the pair below yesterday’s low of 1.2570, should see the pair extending its decline down to 1.2530 area first, and down to 1.2500/10 as the lowest for the day."

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