EUR/USD Under Pressure Below 5-DMA, PMIs in Focus
EUR/USD is seen moving side-ways since the mid-Asian trades, having failed several attempts to reclaim 1.1130 levels, as focus now shifts towards a raft of final manufacturing PMI reports from the Euro area economies due later in the European session.
EUR/USD trades around 5-DMA at 1.1125
Currently, EUR/USD trades -0.07% lower at 1.1126, recovering slightly from fresh session lows of 1.1114 reached post-Chinese open. The main currency pair is seen consolidating the downside after the sharp decline witnessed in the last NY session, as the US dollar remains better bid across the board ahead of the manufacturing PMI reports due on the cards from both continents.
Moreover, as ECB policy meeting draws near, the divergent monetary policy outlook between the Fed and ECB becomes more pronounced, especially after Fed Chair Yellen’s outrightly sounded hawkish last week, citing that a Fed rate hike “is appropriate in the coming months.”
Markets now look forward to the macro releases from the Euroland, with the Euro zone final manufacturing PMI expected to show the same result as seen in the flash reading at 51.5. The flash PMI for Germany's manufacturing sector activity recorded 52.4, with the indicator expected to hold in the final result.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1149/50 (1h 100-SMA/ psychological levels). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1098 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.