EUR/USD Breaks 2023 Low

Today’s PMI figures were released and came in worse than analysts’ expectations. The Flash Manufacturing PMI and Flash Services PMI for both Germany and France fell below the 50.0 threshold, indicating that Europe’s economy is slowing down.

This weakened the euro further and exacerbated the situation on the EUR/USD chart, which has been in a downtrend since early October (as indicated by the red channel):

→ Earlier, support near the 1.0800 level (drawn through the spring-summer lows) was breached.
→ Today, the pair fell below the psychological level of 1.0500 and beneath the 2023 low.

Bears appear to be in control, with EUR/USD trading near the lower boundary of the channel. Arrows on the chart highlight that both the channel median and the 1.0500 level are acting as resistance.

On the other hand, bulls might find hope in the long lower shadow on today’s candle, which could signal emerging demand capable of providing support for the weakened euro.