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It’s all about flash PMI readings from the euro zone economies once more, giving a better idea how the region is reeling from the COVID-19 outbreak.

In the previous week, these European currencies stayed mostly in the red as downbeat commentary from officials brought bearish vibes.

Here’s what you should look out for next:

Flash PMI readings (Apr. 23, starting 8:15 am GMT)

  • Readings above 50 signal expansion, below 50 reflect industry contraction
  • French flash services PMI to fall from 27.4 to 25.1 in April
  • French flash manufacturing PMI to drop from 43.2 to 37.9
  • German flash services PMI to decline from 31.7 to 29.0
  • German flash manufacturing PMI to slide from 45.4 to 39.0
  • Euro zone flash services PMI to drop from 26.4 to 24.9
  • Euro zone flash manufacturing PMI to slip from 44.5 to 39.4
  • Weaker than expected results could drag the shared currency further south

German Ifo business climate index (Apr. 24, 9:00 am GMT)

  • Level of a composite index based on surveyed manufacturers, builders, wholesalers, services, and retailers
  • Decline from 86.1 to 80.0 expected in April

Overall market sentiment

Technical snapshot

  • Stochastic reveals that most euro pairs are still in bullish territory.
EUR Forex Pairs from MarketMilk
EUR Forex Pairs from MarketMilk
EUR Forex Pairs Trend Strength from MarketMilk
EUR Forex Pairs Trend Strength from MarketMilk
  • EUR/CAD and EUR/NZD are also bullish based on moving averages while the rest are on bearish grounds.
  • As for CHF pairs, Williams %R shows that AUD/CHF is overbought while EUR/CHF is oversold.
CHF Forex Pairs Williams %R from MarketMilk
CHF Forex Pairs Williams %R from MarketMilk
  • The rest of the franc pairs are looking neutral for now, at least based on this technical indicator.

Missed last week’s price action? Check out the EUR & CHF price review for April 13 – 17!