EUR/USD nudged higher initially before falling back in the aftermath
The euro moved to a high of 1.1087 against the dollar initially after the German PMI release but quickly settled back to 1.1070 before nudging lower now to 1.1051-60 levels.
As mentioned earlier, the data is a bit of a double-edged sword and that applies to the overall Eurozone reading moments ago too.
On the one hand, the manufacturing recession may appear to have bottomed but it is too early to say that it is on the path of a complete recovery just yet. On the other hand, the services sector continues to struggle and is weighing further on economic growth.
If anything, the PMI releases don't appear to be what EUR/USD buyers were hoping to give them conviction to break the 100-day moving average @ 1.1087.
For the time being, it looks like the 100-hour MA (red line) @ 1.1071 will also be a challenge. Instead, be wary if sellers start to drive price towards the 200-hour MA (blue line) @ 1.1046. If that gives way, it could accelerate a drop in the pair towards 1.1000.
