Last week the Euro created a technical candle formation of a bull pin-bar. By the end of this week, the Euro is credited with losses to its account.
Today’s decline is due in particular to not very good results from the German economy. GDP as expected. What is worth mentioning are the unfavorable results from the PMI index.It captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in Germany. Normally, a result above 50 signals is bullish for the EUR, whereas a result below 50 is seen as bearish.
The results were above the 50 mark, but the results ended below the expectations of analysts and investors, and the euro responded to a decline. Similarly, the German stock index DE 30 (DAX) also dropped after publication.
The euro is already at very low levels, but we know from history that the market can go even lower. For example, the monthly EUR / USD chart. The results are not favorable. Even though they are still above 50, a few months ago they were 55-57. But now we see a slowdown. This may be one of the indicators for economic slowdown in Germany and the euro area as a whole.