Yesterday data on the Eurozone was strong. PMI Services in the Eurozone in September in final estimate was 52.2 vs. forecast for 52.1. Retail Sales in August grew 0.7% against expectations for 0.3% and revised data for July from 0.1% to 0.5%. In the US Initial Jobless Claims were 308K vs. 315K. On the whole the investors are expecting.
Today at 13:00 UTC+4 Producers Price Index in the Eurozone in August is issued; forecast 0.1% vs. 0.3% in July. If PPI in the Eurozone will be in line with the estimates, then there will be no reasons for the rise of the euro. We expect sideways movement with some downward pressure.
The first bearish target is the psychological level of 1.3600. Then the area 1.3577/87 comes, consolidation of October 2-3. After that we see the highs of September 19 and 27 at the level of 1.3564 and the fourth target 1.3537/42. The price may move upwards again to the depicted range on the H4 1.3640/46. We suppose that the price cannot consolidate above green trend line, higher than 1.3646.
