EUR/USD drops below 1.0800 after Germany and EU PMIs

In the early hours of Friday AM Europe, EUR/USD lost momentum and fell under 1.0800. The Composite PMI nudged up in early March, according to statistics from Germany and the Eurozone, although the Euro had trouble finding buyers. The US PMI surveys will be released by S&P Global tomorrow.

The Relative Strength Index (RSI) indicator on the four-hour chart dropped just below 60 after remaining in overbought territory early on Thursday, indicating that buyers had fled the market. EUR/USD also fell below the ascending regression channel.

As immediate support on the downside, 1.0820 (Fibonacci 23.6% retracement of the most recent rally, 20-period SMA) is aligned. The negative correction may continue towards 1.0760 (Fibonacci 38.2% retracement) and 1.0720 if the pair breaks through that level and begins to use it as resistance (50-period SMA).

Prior to 1.0900 (psychological level, static level), which is the first resistance, and 1.0930 (multi-week high set on Thursday).