The euro was down 0.57% on the day on Thursday. The strong declines came as the flash PMI reports for the eurozone came out weaker than forecast. The eurozone’s manufacturing PMI eased to 47.8 while services PMI was at 52.5. The data suggests that the economic growth in the eurozone was still weak. Economists were hoping to see a rebound in business activity.
Will the EURUSD Recover from the Declines?
The EURUSD gave up the gains as price fell to a weekly low. However, the reversal looks to be taking place following the doji candlestick on the 4-hour chart. The currency pair will need to break out from 1.1246 in order to post any meaningful correction to the upside. A retest of the 1.1276 level will see the resistance area being tested once again.