The economy of the euro area is sputtering. The manufacturing Pmi in Germany and euro zone were slightly more than 30. The Pmi Services were very special, in Germany, fell to 16.2, while the euro area fell to 12.0, highlighting the strong contraction in the services sector in the month of April. The pain has been felt in the whole economy of the euro zone retail sales fell 11.2%, while German industrial production fell by 9.2 percent.
In the U.s., factory orders fell 10.3% in October, after a flat 0.0% reading a month earlier. The employment figures for the month of April were dismal. Unemployment claims are arrived at 3.16 million, a decrease of $ 3.8 million a week earlier. This brings the total to a staggering $ 33.4 million. The broker, who is going to give the payrolls recorded a fall record of $ 20.5 million in April, slightly below the estimate, or $ 22.4 million. The unemployment rate jumped to 14.7%, up from 4.4% a month earlier. Still, this beat the forecasts, or 16.0 per cent. There was some good news that wage growth rose to 4.7%, crushing the estimate, or less than 0.5 percent.
EUR/USD daily chart with support and resistance lines. Click to enlarge:
- Euro-Zone Industrial Production: Wednesday, 5:00 pm. After a strong gain, or 2.3%, in February, the indicator sagged, and posted a decline of -0.1%. The analysts are ready for a huge drop of 12%.
- The German CPI: Thursday, 2:00 pm. The initial reading of consumer inflation, posted a gain, or 0.3% in April, above the forecast, or 0.0 per cent. The final reading is expected to confirm the initial version.
- German Preliminary GDP is: Friday, 2:00 pm. In the fourth quarter, or 2019 at the latest, the German economy has been stagnant, with a reading of 0.0%. The initial reading for the Q1 stands at -2.3%, as in central Europe, is expected to show a sharp recession.
- The Euro zone Flash GDPFriday, 5:00 pm. The economy of the euro area recorded a small gain of 0.1% in Q4, or 2019 at the latest. Investors are willing to a dismal reading in Q1, with a forecast, or -3.8 percent.
EUR/USD Technical analysis
Technical from top to bottom:
We begin with resistance at 1.1215, who has been a hero since mid-January. 1.1119, this is the following.
1.1025 (mentioned last week) has a bit of a breather after the sharp losses for the EUR/USD last week.
1.0900 is still valid, and has switched to a resistance role.
1.0829 was tested last week. He could see further action early next week.
The round number of 1.07 has seen action in mid-March, when the EUR/USD showed a high volatility.
1.0620 is the protection of the 1.06 level.
1.05 is the last level of support for the time being. this is the last support line for now.
I remain bearish on EUR/USD
The German and euro zone GDP numbers are predicted to be very special, reflecting the deterioration of the situation in the euro area, because of the Covid-19 of the outbreak. This could weigh on the shaky euro.
For more information:
The Security Of The Trade!
“The 5 most predictable currency pairs in