(MENAFN- DailyFX) EURUSD Price Charts and Analysis:
EURUSDmay sink further as 1.1000 gives way again. Germany is expected to be in recession in Q3.
Q3 2019EURandUSDForecasts and Top Trading Opportunities
EURUSD Sinks as German Economic Woes Continue-p
p-The German economy is likely to fall into recession in the third-quarter of 2019, 'as the downturn in manufacturing deepened and service sector growth lost momentum', according to data provider IHS Markit. The composite index hit its lowest level since October 2012, while the manufacturing numbers are 'simply awful' according to the data provider. Germany is expected to enter an official recession in Q3 and may not see any growth this year.
According to Phil Smith, principal economist at IHS Markit, 'The manufacturing numbers are simply awful. All the uncertainty around trade wars, the outlook for the car industry and Brexit are paralyzing order books, with September seeing the worst performance from the sector since the depths of the financial crisis in 2009. 'With job creation across Germany stalling, the domestic-oriented service sector has lost one of its main pillars of growth. A first fall in services new business for over four-and-a-half years provides evidence that demand across Germany is already starting to deteriorate.'
![EUR/USD Price Slumps as Germany PMI Data Points to Recession]()
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p-EURUSD continues to point lower and may re-test the two recent low prints around 1.0925 made earlier this month. Below here there is very little in the way of strong support. There is a gap in April 2017 on the weekly chart between 1.0777 and 1.0821 which is likely to be filled in the short-term, before the January 2017 low at 1.0340 comes into play. In the current environment is looks very unlikely that EURUSD will break back above the cluster of lows/highs around 1.1100 and 1.1120.-pp-
EURSUD Price Daily Chart (January – September 23, 2019)
![EUR/USD Price Slumps as Germany PMI Data Points to Recession]()
The IG Client Sentiment Indicatorshows retail traders are 65.0% net-long of EURUSD, a bearish contrarian bias.
Traders may be interested in two of our trading guides –Traits of Successful TradersandTop Trading Lessons– while technical analysts are likely to be interested in our latestElliott Wave Guide .
What is your view on the Euro – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author or via Twitter@nickcawley1 .
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