The EUR/USD pair fell below the psychological support level of 1.10 during the beginning of the European session on Monday, affected by the German PMI data after it came in much weaker than the financial markets had expected. After the failures of the multiple recovery attempts to break the falling trend line that starts from 1.1410 (June 25th high). And the daily close below 1.10 seems that the pair will try to test the major support at the double bottom (September 3 & 12) 1.0926.. The broken 1.10 area now provides immediate resistance, followed by 1.1030.
To the downside, we find the initial support at 1.0980, which it broke again will encourage the sellers to reach below the bottom on Monday, targeting 1.0926, from which the price is likely to rebound for the third time this month. But the clean break of it gives a signal to resume the weekly downtrend over the medium and long term, targeting areas like 1.880.
Today, the markets are waiting for the German Ifo business climate index, which may come much less than expected due to the decline in the PMI and the decline in industrial production and factory orders. consumer.