EUR/USD Near 1.1120 Ahead of PMIs
EUR/USD is prolonging its leg lower halfway into the week, currently trading in the 1.1130/20 band ahead of PMIs in Euroland.
EUR/USD focus on PMIs, US ISM
Spot is looking to snap a 4-week negative streak after the rejection from early May tops at 1.1615.
The resurgence of the demand for the greenback on mounting speculations of a rate hike by the Fed at its June/July meeting has been the exclusive catalyst of the down move, although the 1.1100 neighbourhood has offered quite a decent support for the time being.
Later in the session, final May manufacturing PMIs area due in the euro area, although market participants will look to the US docket for stronger drivers, where the key ISM Manufacturing will be published followed by Markit’s manufacturing PMI, the weekly report by EIA and the Fed’s Beige Book.
EUR/USD levels to watch
The pair is now retreating 0.09% at 1.1122 and a breakdown of 1.1096 (200-day sma) would target 1.1055 (low Mar.16) en route to 1.0820 (low Mar.10). On the flip side, the initial up barrier lines up at 1.1178 (100-day sma) followed by 1.1246 (high May 23) and finally 1.1259 (20-day sma).
