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Market Uses German Manufacturing PMI as Excuse to Break Flag Pattern

Markit's Flash Manufacturing PMI for Germany in March came in at 53.8, which was lower than February's 54.8, and missed forecast of 54.7.

A mark above 50 reflects expansion in manufacturing activity, but the growth slowed compared to past few months


source: tradingeconomics.com

Despite the dip in 2014, the PMI reading has been in an improving trend since the beginning of 2013. 

The market did see this as an excuse to sell the EUR/USD into a newly developing bearish trend in the short-term. The dip broke below a flag pattern, continuing to hint at further downside risk.

However, US traders did not join this bearish trade, at least in the beginning of the session.


(EUR/USD 1H Chart)