EUR/USD Breaks 1.1200 Handle, Vulnerable Below 1.1180
The EUR/USD
pair dropped back below 1.1200 handle as the greenback gained further
traction across the board during the early NA trading session.
The shared currency failed to extend its Asian trading bounce to 1.1243
and has now dropped below 1.1200 handle as traders seemed unimpressed
with the flash version of Euro-zone's PMI figures. Early during the
European session, the flash version of Euro-zone manufacturing and
services PMI fell short of consensus estimates but still showed
expansion during May.
Last week, the pair did drop below 1.1200 handle but managed to hold the
round figure mark support on daily closing basis. Hence, a decisive
break through below last week's low of 1.1180 is required to confirm a
near-term break down for the pair.
Technical levels to watch
Below 1.1180, the pair seems set to extend its downfall further towards
testing 100-day SMA support near 1.1160-55 region. Weakness below
100-day SMA is likely to get extended towards a medium-term ascending
trend-channel support near 1.1100 round figure mark.
On the upside, 1.1235-40 area now becomes immediate hurdle to be
cleared. A sustained strength above this immediate barrier seems to
assist the pair towards 1.1285-1.1300 round figure mark strong
resistance.
