Germany’s manufacturing orders showed a 2.2% decline on a month over month basis in May. Economists forecast a 0.1% decline. On a yearly basis, German manufacturing is down 8.6%.
The euro remained weak on the data besides the stronger USD. Traders will be closely watching the data out of the eurozone ahead of the ECB meeting due later in July. ECB President Draghi has promised to lower interest rates if the economy continues to deteriorate.
EURUSD Breaks the 1.1250 Support
The currency pair broke past the support level at 1.1250 level on Friday. This pushed the EURUSD to test a two-week low at 1.1206 before pulling back slightly. In the near term, we expect the currency pair to test the 1.1250 level to establish resistance. If resistance forms, then we expect the downside bias to push the EURUSD to lower lows. The next main target is seen at 1.1190.
