Sell at the breakout of the flag.
Levels As described
The pair is under heavy bearish pressure. As we have mentioned in our previous forecast, nothing supports Euro. Today, Euro Bulls was focused on hoping a promising PMIs. However, the result was just a diappointment again.
The German Manufacturing PMI fell more than expected in November to a 32-month low of 51.6, on the back of slowing output and weak hiring. Backlogs of work fell for the first time in over 2 years on slower order book growth.”
In France, the Services PMI fell slightly to 55.0. Firms noted that new client growth was strong. The French Manufacturing PMI fell slightly more than expected to 50.7 on the back of falling demand, particularly for autos – this is likely related to the regulatory changes that have been weighing on European production and demand in recent months
As cited by ECBWatch, money market futures dated to ECB’s December 2019 meeting now price in around 88% chance of 10 bps rate hike, down from 95% seen earlier this week.
After breaking the bearish flag – as we pubslihed yesterday – the pait hit 1.13300 support. EURUSD is trading at 1.13540 as of writing – retesting the broken support –
The first key level is 1.13100 and the breakout of this support will trigger the bearish move.
We keep or bearish bias with 1.11*** and 1.08*** targets midterm. Throwback can be used as selling opportunities.