EUR/USD Extends Losses on Upbeat US ISM Manufacturing Print
EUR/USD Extends Losses on Upbeat US ISM Manufacturing Print
A rebound in the US ISM manufacturing PMI to expansion territory has pushed EUR/USD to a fresh session low of 1.1342 (Mar 17 high).
Dollar strengthens as treasury yields extend gains
The greenback is extending its broad based recovery as short duration treasury yields extended gains following the release of US ISM manufacturing number. The 2-yr treasury yield clocked a fresh session high of 0.776%. Even the long duration yields are now positive on the day.
Consequently, EUR/USD pair extended losses from the post-payrolls level of 1.1475 to a new session low of 1.1335. Prices witnessed strength for a brief moment after payrolls data showed a rise in unemployment and thus rose to 1.1438 before the effect of strong NFP and wage growth figure kicked-in.
The spot is now 100-pips lower from its daily highs. Nevertheless, a weekly gain is a done deal, since the opening price is 1.1160.
EUR/USD Technical Levels
Acceptance below 1.1342 (Mar 17 high) on daily closing basis today would shift risk in favor of a re-test of 1.1293 (23.6% of May 2014 high-Mar 2015 low), under which prices may drift lower to 1.1257 (61.8% of 1.1714-1.0517).
Conversely, a break above 1.1418 (23.6% of March 2015 low-Aug 2015 high ) levels next week would reinforce bullish calls and thus open doors for rise to 1.1460 (Sep 18 high) followed by a test of 1.15 handle.
(Market News Provided by FXstreet)
