The manufacturing and services PMI data published at the beginning of the week yesterday were the drivers of movement for several major currencies.
The publication of the 'red' European PMI data dealt a heavy blow to the Euro currency which failed to continue its appreciation.
In the New York session, the same situation occurred on the US dollar after the manufacturing sector of the United States (US) showed a declining figure for economic activity in September.
Thus, it can be seen the effect of the following data on the movement on the price chart of the EUR/USD currency pair yesterday.
The price which was initially slow in the Asian session around 1.11600 then plunged in the European session until it reached the 1.11000 zone.
It did not continue to drop lower, instead the price bounced back after the zone was tested, becoming support when making the price.
This follows the reaction of the US PMI data in the New York session which weakened the US dollar and saw the price bounce up to around 1.11400.
Towards the end of the session, the price dropped back to near the 1.11000 zone with the horizontal price movement continuing the opening of the Asian session this morning (Tuesday).
The price that is below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart is now signaling a bearish price movement.
If the price drops below the 1.11000 zone, a further decline can be expected with the target being at the focus of the previous week, which is the 1.10000 zone.
However, if a strong price rebound is shown after failing to break through 1.11000, the price increase will target the resistance of 1.12000 which has yet to be broken through.
