EUR/USD Trims Gains after US ISM Manufacturing PMI Data

EUR/USD Trims Gains after US ISM Manufacturing PMI Data

1 June 2016, 16:33
Roberto Jacobs
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EUR/USD Trims Gains after US ISM Manufacturing PMI Data

The EUR/USD pair reversed from a fresh weekly high level of 1.1186 and trimmed its gains to currently trade at 1.1150 following the release of better-than-expected US ISM Manufacturing PMI data.

According to the data released just a while ago, US ISM Manufacturing PMI rose to 51.3 in May, better-than April's reading and expected 50.5. 

Although, today's ISM reading might be enough for not denying an imminent Fed rate-hike in June, but recent softness in the economic prints, coupled with the uncertainty surrounding the 'Brexit', might not be supportive of the same. 

Investors would now wait for Friday's monthly jobs report before evaluating the timing for next Fed rate-hike move.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the EUR/USD pair is recovering towards the 1.1200 region, and in the 1 hour chart, the price has managed to advance above all of its moving averages that anyway lack clear directional strength, whilst the technical indicators are losing part of its upward strength near overbought readings, but far from suggesting a downward move. In the 4 hours chart, the price is advancing above a bearish 20 SMA whilst the technical indicators maintain tepid bullish slopes above their mid-lines, in line with the shorter term outlook."

"Support levels: 1.1160 1.1120 1.1090"
"Resistance levels: 1.1200 1.1245 1.1280"


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