On Tuesday morning, the EUR/USD traded below the 1.1000 level, which had been providing resistance since the middle of Monday's trading session.
The rate was expected to continue to trade at that level until the resistance of the 55 and 100-hour simple moving averages approach from the above and push the rate down.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
Yesterday, the EUR/USD currency pair tested the support level formed by the weekly S1 at 1.0979. During Tuesday morning, the pair was trading near the 1.1000 mark.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 64% 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, 70% of orders were to buy.