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Forex: EUR/USD goes under 1.3200 on EMU PMI

First, a drop from the early morning peak of 1.3276 on French PMI, followed by a tumble from 1.3260 to the lowest area of 1.3200. Now, the publication of flash February EMU PMI data pushed the EUR/USD below 1.3200, to as low as 1.3192 for now. The magnetic psychological handle might hold the pair.

EMU Markit PMI Composite eased from 48.6 to 47.3, against a rising consensus of 49.9. Markit manufacturing also disappointed by dropping from 47.9 to 47.8 (consensus of 48.5) and services PMI fell from 48.6 to 47.3 (consensus of 49.0).

Flash February German manufacturing PMI turned expansionary as expected, but instead of rising from 49.8 to 50.5, it only rose to 50.1. Services PMI eased from 55.7 to 54.1 (consensus of 55.5).

French manufacturing data improved from 42.9 to 43.6 and services PMI eased from 43.6 to 42.7. EMU Markit PMI is next in line.

A break below trendline support at 1.3230 is “seen as a trigger for fresh weakness towards strong support area at 1.3185, 50% of 1.2660/1.3710 / daily Ichimoku cloud top and 1.3170, Sep 2012 highs”, wrote Windsor Brokers analyst Slobodan Drvenica, pointing to 1.3300 as resistance along with 1.3330.

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