21.06 - bullish EUR/USD pattern is under threat
- by Anna K.
Bullish – that is the behavior of EUR/USD chart today before German and Eurozone PMIs. And what is a PMI? It is a leading indicator of economic health as it indicates the purchasing power of businesses that tend to react to economic changes much quicker than the average buyer and consumer. And the more the purchasing power of businesses contracts, the worse the economy is doing. And as we know in the past we have seen reports like this ruin the performance of the most popular couple in the markets.
As the strongest and really the most important economy of the region Germany has all the power to drop EUR lower than it was a couple of days ago. All we need to do to is wait for the reports to come out and see the reaction of euro towards the data. The breakout is likely for the couple due to a very weak greenback. If the data in the reports are good, we are surely going to see the surge of euro against the greenback.