So the last ECB meeting was chaired by Mario Draghi. In the closing speech, he traditionally noted the risks for the eurozone, but stated that the current soft policy mitigates these risks, and also traditionally wished European politicians to strengthen financial integration processes. The speech can be generally called neutral.
European Manufacturing PMI for October did not change: 45.7 against the forecast of 46.1, Services PMI increased from 51.6 to 51.8, the forecast was 51.9. In the US, the data can be called weak: orders for durable goods fell in September by -1.1% (forecast -0.5%), sales of new homes in September showed a figure of 701 thousand compared to the forecast of 710 thousand and the August indicator was lowered from 713 thousand to 706 thousand. US Manufacturing PMI from Markit increased from 51.1 to 51.5 in October, Services PMI grew to the expected 51.0 from September 50.9. The euro closed the day with a decrease of 25 points. Obviously, the second stage of closing positions was taking place on the market simply on the occasion of a farewell speech by Mario Draghi. The first closing day, less voluminous, was on Tuesday.
On the daily chart, the price worked out the planned Fibonacci level of 110.0% (1.1155) and returned under the blue price channel line. The signal line of the Marlin oscillator is going down steep enough to be a sign of a trend reversal. The immediate goal of 1.1074 is the Fibonacci level of 123.6%. Consolidation under the level (consolidating is necessary, since the level coincides with strong record reversal zones, the closest of which is the middle of September and the third decade of August) will continue to decline to the MACD line in the region of 1.1025.
On a four-hour chart, the price has consolidated under the indicator lines of balance and MACD, Marlin in the decreasing trend zone. Target levels are marked.
Origin: InstaForex
