The Euro is down 3.69% in the last seven trading days and reached its lowest level in 20 years. Energy prices surging across the Globe weakened the Euro as the energy crisis continues to unfold ahead of winter.
Later today, the Euro Area will release S&P Global Manufacturing and S&P Global Services PMI; the first economic indicator expert consensus is at 49, a contraction of 0.8 from the previous figure; this is likely to continue weakening the EUR. Furthermore, S&P Services PMI is expected to come out at 50.5, a figure 0.7 lower than the previous release.
The US will also release S&P Manufacturing PMI and S&P Services PMI. The Manufacturing PMI analyst consensus is 52, just 0.2 short of the previous number. The Services PMI is expected to increase from 47.3 to 49.2, leaving it inside the contraction area. A result better than expected will benefit the exchange rate for the USD.
The Bollinger bands are opening up aggressively; volatility will be higher in the short term, and the price is trading below the lower band, indicating that the price is considered relatively low.
The pair trades below the short and long-term moving averages and the trend continue to be downwards; however, the relative strength index is at 32%, and once it reaches 30%, we will likely see a sentiment change.
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