EUR/USD (current price: 1.0560)
The pair fell to a new 11-month low yesterday, following a stable morning session. The Eurozone Manufacturing and Services PMIs mostly came in above the consensus estimates yesterday. The German Manufacturing PMI was the only exception, slightly missing the expected 54.8 number with a reading of 54.4. The positive surprises helped the common currency in early trading, before the release of the U.S. Durable Goods Report. Durable Goods Orders were much better than expected, rising by 4.8% in October, compared to the consensus estimate of 1.2%.
Our assessment: The cross continued its downtrend yesterday following a short consolidation period. The long-term low near 1.0475 provides support, with resistance at 1.0850.
