The PMI data published on Wednesday yesterday became the main focus of the market to assess economic activity in the manufacturing and service sectors.
Data readings for Europe showed dismal activity with a drop in July figures particularly in Germany.
The euro fell at the start of the European session yesterday, indicating that the European currency will continue to move under pressure.
The same data was published for the United States (US) in the New York session yesterday with mixed readings.
The manufacturing sector recorded a reading below the 50-point level indicating the first contraction of the year while the services sector was strong with a reading that jumped to a 28-month high.
The US dollar also suffered a decline at the beginning of the New York session but returned to display a strengthening towards the end of the session.
Examining the effect of data release on movements on the EUR/USD currency pair chart, prices are seen to be still moving in a downward trend.
The decline reached around 1.08250 in the European session yesterday before the price rebounded to the 1.08660 level.
The price increase is blocked at the Moving Average 50 (MA50) line on the 1-hour time frame on the chart, which indicates a price movement signal that remains bearish.
The price dropped again and then slowly leveled off at the level of 1.08400 continuing trading in the Asian session this morning (Thursday).
If the bearish pattern of the price is maintained, the price is expected to drop to the level around 1.08000 to test the important zone.
A lower decline could happen if the US dollar manages to maintain pressure on the Euro.
However, if the situation changes, a price rebound that crosses the MA50 barrier will give an early signal for a trend change.
Prices that make an increase will face resistance at the 1.09000 zone as the price movement stalled at the beginning of the week.
