Forex: EUR/USD in weekly lows on German PMI

FXstreet.com (Barcelona) - High volatility in the cross so far, falling from session highs in the proximity of 1.3090 to the current lows around 1.3010/15 after the German manufacturing PMI disappointed investors in April, falling to 47.9 vs. 49 expected and previous. The services PMI followed suit, dropping to 49.2 vs. 51.0 estimated and 50.9 previous.

“The building expectations of further ECB easing are weighing upon the euro in the near-term although the sharp decline in Italian and Spanish government bond yields yesterday following the re-appointment of Italian President Napolitano are providing offsetting euro support”, assessed Lee Hardman, Currency Analyst at BTMU.

At the moment, the cross is losing 0.38% at 1.3017 and a breach of 1.3015 (low Apr.22) would open the door to 1.3001 (low Apr.17) and then 1.2969 (MA21d).
On the flip side, resistance levels align at 1.3130 (high Apr.19) followed by 1.3202 (high Apr.16) and finally 1.3229 (50% of Feb-Apr slide).