Forex traders will start the new trading week with a series of preliminary PMI data out of the Eurozone. Economists predict a general improvement out of France, Germany and the Eurozone as a whole. The EURUSD has around its current support level with a rise in negative sentiment in the US Dollar after the Fed delivered its second consecutive 25 basis point interest rate cut, but without a clear fundamental driver for the Euro to the upside. How will this morning’s PMI data impact price action? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in the EURUSD.
The US will release its PMI data today which is expected to move the US Dollar, especially if the data comes in weaker than expected. Economists expect the Composite PMI to drop below the 50.0 mark which would indicated a broader contraction across the US economy. The Manufacturing PMI is expected to hover just above the 50.0, where will the Services PMI clock in? The US Dollar is expected to come under selling pressure of the Services PMI slides closer to the 50.0 mark. Will this rally the EURUSD? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips in monthly profits.
Here are the key factors to keep in mind today for Euro trades:
- French Manufacturing PMI, Services PMI and Composite PMI: The Preliminary French Markit Manufacturing PMI for September is predicted at 51.2. Forex traders can compare this to the French Markit Manufacturing PMI for for August which was reported at 51.1. The Preliminary French Markit Services PMI for September is predicted at 53.2. Forex traders can compare this to the French Markit Services PMI for for August which was reported at 53.4. The Preliminary French Markit Composite PMI for September was reported at 52.6. Forex traders can compare this to the French Markit Composite PMI for for August which was reported at 52.9.
- German Manufacturing PMI, Services PMI and Composite PMI: The Preliminary German Markit Manufacturing PMI for September is predicted at 44.0. Forex traders can compare this to the German Markit Manufacturing PMI for for August which was reported at 43.5. The Preliminary German Markit Services PMI for September is predicted at 54.3. Forex traders can compare this to the German Markit Services PMI for for August which was reported at 54.8. The Preliminary German Markit Composite PMI for September is predicted at 51.5. Forex traders can compare this to the German Markit Composite PMI for for August which was reported at 51.7.
- Eurozone Manufacturing PMI, Services PMI and Composite PMI: The Preliminary Eurozone Markit Manufacturing PMI for September is predicted at 47.3. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for for August which was reported at 47.0. The Preliminary Eurozone Markit Services PMI for September is predicted at 53.2. Forex traders can compare this to the Eurozone Markit Services PMI for for August which was reported at 53.5. The Preliminary Eurozone Markit Composite PMI for September is predicted at 52.0. Forex traders can compare this to the Eurozone Markit Composite PMI for for August which was reported at 51.9.
Here are the key factors to keep in mind today for US Dollar trades:
- US Chicago Fed National Activity Index: The US Chicago Fed National Activity Index for August is predicted at 0.13. Forex traders can compare this to the US Chicago Fed National Activity Index for July which was reported at -0.36.
- US Markit Manufacturing PMI, Services PMI and Composite PMI: The Preliminary US Markit Manufacturing PMI for September is predicted at 50.3. Forex traders can compare this to the US Markit Manufacturing PMI for August which was reported at 50.3. The Preliminary US Markit Services PMI for September is predicted at 51.5. Forex traders can compare this to the US Markit Services PMI for August which was reported at 50.7. The Preliminary US Markit Composite PMI for September is predicted at 49.6. Forex traders can compare this to the US Markit Composite PMI for August which was reported at 50.7.
Should price action for the EURUSD remain inside the or breakout above the 1.0990 to 1.1065 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1020
- Take Profit Zone: 1.1250 – 1.1320
- Stop Loss Level: 1.0960
Should price action for the EURUSD breakdown below 1.0990 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0960
- Take Profit Zone: 1.0775 – 1.0820
- Stop Loss Level: 1.0960
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Online forex trading continues to expand and remains the fastest growing sector of the financial market, join us today and become part of a fast growing trading community!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
