EUR/USD collapses further after worrying European PMIs, target 0.97? By Investing.com



Investing.com – The pair has fallen sharply since the European session’s outflow, having so far bottomed out at 0.9767, the lowest in over 20 years.

After Wednesday evening’s Fed meeting, which had already weighed on the EUR/USD, by sinking the Dollar, the pair is affected this morning by the preliminary European PMI indices for September.

The data was indeed mixed: France posted a manufacturing PMI of 47.8 against 49.8 expected, for a services PMI of 53, against 50.5 expected.

Germany’s manufacturing PMI came out just in line with expectations (48.3), which was not the case for the services PMI, which came in at 45.4 against 47.2 expected.

With regard to the euro zone as a whole, the manufacturing PMI came out confirmed, at 48.2, while the services PMI barely missed the consensus, at 48.9 against 49 expected.

Note that these figures reflect a worsening of the economic situation in Europe, which implies that the ECB will have less free hand to join the Fed in terms of rate hikes, hence the sharp fall in EUR / USD .

Finally, from a graphical point of view, the EUR/USD pair broke below the support of 0.9800/0.9810, exposing the next potential supports at 0.9750 and 0.97, this last threshold having moreover been recently announced as an end target. year by several banks, including Nordea and Morgan Stanley (NYSE:).

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