The French report earlier took EUR/USD down from 1.1146 to 1.1124 but the pair is now down to 1.1080 after a rather ugly set of German PMI readings here. This comes alongside a fall in regional bond yields, with 2-year German yields now down nearly 6 bps on the day to 3.177% currently. As for EUR/USD, sellers are reaffirming their position in keeping the near-term bias more bearish:
EUR/USD hourly chart
There was a bit of a consolidation since Friday but the latest data today is giving reason for sellers to keep the downside push from the latter stages of last week going. The pair broke below both its 100 (red line) and 200-hour (blue line) moving averages, so that keeps the near-term bias more bearish for now.
Adding to that is the likely crossover of the former below the latter, which chartists like to attribute as being the “golden cross”.
There might be some minor support around 1.1054 (50.0 Fib retracement of the swing higher this month) but otherwise, the pair could be staring at a straightforward drop towards 1.1000 potentially next. That considering there is little in terms of technical support since falling back below the 1.1200 mark.