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Eurozone PMI Disappoints, Pushes EUR Lower

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Written By: Senad Karaahmetovic

Oct 24, 2019, 09:12 BST 09:12

EURUSD

Summary:

Eurozone PMI preliminary data for October has disappointed with all three componenets missing forecasts. Both EURUSD and EURJPY drop 20 lower on the data.

Contrary to expectations that the Eurzoone PMI will improve in October, the data released by Markit Economics shows another disappointment for the EUR bulls.

Markit Services PMI 51.8 vs 51.9 expected
Markit Manufacturing PMI 45.7 vs 46.0 expected
Markit PMI Composite 50.2 vs 50.3 expected

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Looking at other EUR pairs, EURJPY has 20 pips lower as well, after it has enjoyed a great spell in the recent days. Similar to EURUSD, EURJPY is now trading below the 121.00 handle after it posted an intraday high of 121.38.

The pair is in a clear bullish mode having gained around 3% in October. Bulls are targeting the resistance zone of 121.80 – 122.20, which is constituted of the 161.8% Fibonacci resistance and the 200 WMA.