On Wednesday morning, the EUR/USD currency pair was trading at the 1.1000 level.
The pair was expected to trade downwards within the short-term descending channel, as it is pressured by the 100- and 200-hour moving averages.German Flash Manufacturing and Services PMIs
The European Common Currency depreciated against the US Dollar, following the German Flash PMIs survey results release on Monday at 07:30 GMT. The EUR/USD exchange currency rate lost 15 pips or 0.14% right after the release. The Euro continued trading at the 1.0975 level against the US Dollar.
Markit released the German Manufacturing PMI survey result, which came out worse-than-expected of 41.4 compared with the forecast of 44.6.
According to the official release: "The German economy contracted in September, latest flash PMI data showed, as the downturn in manufacturing deepened and service sector growth lost momentum. Job creation meanwhile stalled as firms reported weakening demand and pessimism towards the outlook for activity. The fall in output was accompanied by easing price pressures, with average charges for goods and services rising at the slowest rate for over three years."
US Releases Might Cause Minor Moves
On Thursday, the US Final GDP will be published at 12:30 GMT. This event has caused moves on the EUR/USD from 5.2 to 26.4 pips since June 2018.
Note that during the last two releases the pair moved only 5.2 and 7.6 pips, which is irrelevant.
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the EUR/USD moved from 5.4 to 10.9 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair tried to surpass the resistance formed by the 100-hour SMA at 1.1020. During today's morning, the pair was testing the support level – the 55-hour SMA at 1.0999.Note that the exchange rate has revealed the descending channel pattern, and has already reversed south from its upper boundary. Thus, it is likely that some downside potential could prevail in the market. Important level to look out for is the weekly S1 at 1.0979.
However, if the 55-hour moving average holds, it is likely that the currency pair could breach the given channel north. In this case it is unlikely that the Euro could exceed the 1.1035 mark against the US Dollar due to the resistance level formed by the weekly PP and the 200-hour SMA.
Hourly Chart
On the daily candle chart, the rate's decline was consistent with the long term descending channel pattern. The rate has clearly broken off the upper trend line of the pattern.
The rate should continue to decline in the pattern until the middle of October.
Daily chart
On Wednesday morning, 64% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were slightly bullish, as 55% of orders in the 100-pip range were set to buy.