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.