The release of the European Manufacturing and Services PMIs caused a sharp drop of the Euro. The total decline of the rate from 06:00 GMT to 08:00 GMT was almost 60 base points.
Due to that reason, previous forecasts are still valid and the markets wait for the end of the consolidation to see action.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
EUR/USD hourly chart's review
After the decline caused by the PMIs, the EUR/USD stopped at the 1.0970 level. From this level a consolidating surge began, which reached above the weekly S1 pivot point.Hourly Chart
Since last Tuesday, 66% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
These positions most likely are in the green, as the rate is clearly below last Tuesday's levels.
Meanwhile, pending trade orders were mostly to buy, as 70% of orders in the 100-pip range were set to buy. It was assumed that these are stop losses and take profits of the short positions and buy to open long orders in case of a retracement back up.
Previously, 58% of orders were to sell.