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2 Jun 2014
EUR/USD recovers beyond 1.3600
FXStreet (Edinburgh) - After dipping to the area of 1.3595/90, the EUR/USD managed to pick up pace and is now trading back above the 1.3600 handle.
EUR/USD depressed by PMIs
The pair saw its earlier gains trimmed after final manufacturing PMI prints in the euro area disappointed investors in May, just to later revert the drop near 1.3590. Further data showed preliminary consumer prices in Germany missing forecasts in May, expanding at an annual pace of 0.9% vs. 1.1% estimated and April’s 1.3% gain. However, traders largely bypassed these results and they are now focusing on the US docket, with the manufacturing Markit PMI, ISM index. “Bearish price action, a strong rejection of technical resistance below 1.40 and the loss of weekly trend support over the past weeks combine to suggest that a sustained correction of the 1.27/1.39 rally is likely to unfold in the months ahead”, signalled Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to watch
At the moment the pair is losing 0.15% at 1.3611 with the immediate support at 1.3586 (low May 29) ahead of 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the upside, a breakout of 1.3645 (200-d MA) would expose 1.3650 (high May 30) and finally 1.3655 (Tenkan Sen).
EUR/USD depressed by PMIs
The pair saw its earlier gains trimmed after final manufacturing PMI prints in the euro area disappointed investors in May, just to later revert the drop near 1.3590. Further data showed preliminary consumer prices in Germany missing forecasts in May, expanding at an annual pace of 0.9% vs. 1.1% estimated and April’s 1.3% gain. However, traders largely bypassed these results and they are now focusing on the US docket, with the manufacturing Markit PMI, ISM index. “Bearish price action, a strong rejection of technical resistance below 1.40 and the loss of weekly trend support over the past weeks combine to suggest that a sustained correction of the 1.27/1.39 rally is likely to unfold in the months ahead”, signalled Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to watch
At the moment the pair is losing 0.15% at 1.3611 with the immediate support at 1.3586 (low May 29) ahead of 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the upside, a breakout of 1.3645 (200-d MA) would expose 1.3650 (high May 30) and finally 1.3655 (Tenkan Sen).