EUR/USD Drops Further to 1.1380 on German Data, PMIs Eyed
The EUR/USD pair is seen extending its retreat from ahead of 1.14 barrier into early Europe, and now hovers near session lows, awaiting fresh incentives from the EMU data releases.
EUR/USD remains below 1.1400
Currently, EUR/USD trades -0.09% lower at 1.1379, having breached the key support zone near 1.1387-89. The main currency pair remains pressured as the US dollar retraced losses against its major peers amid widespread risk-off trades.
Further, a renewed bout of selling interest in the major can be attributed to awful factory orders data from Germany, which surprised markets to the downside and caught the EUR bulls off-guard. The German factory orders dropped 1.2%, against the estimated 0.5% increase and even worse than last month's -0.1% decline.
Attention now remains on the Euro zone services PMIs, followed by the region’s retail sales data for further cues on the EUR moves. While the US trade balance, ISM non-manufacturing PMI and JOLTS jobs openings data will be also closely eyed in the NY session.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1437/50 (Apr 1 High/ Oct 2015 levels). A break beyond the last, doors will open for a test of 1.1500 (key psychological levels). On the flip side, the immediate support is placed at 1.1366/56 (1h 100-SMA/ daily S1) below which at 1.1309/1.1275 (10-DMA/ 1h 200-SMA) could be tested.
(Market News Provided by FXstreet)