EUR/USD: EZ PMIs-led rally fizzles, recedes to 1.1160
|The EUR/USD pair stalled its bullish run to near 1.1190 levels, and quickly retraced almost 30 pips amid a broad based US dollar.
EUR/USD back around 1.1160
The latest move lower in the spot is mainly driven by fresh selling in the German yields, as the European traders dump the equities in favor of the German bunds. The benchmark 10-year German yields reversed from daily tops of 0.267% to now trade near 0.255%
Moreover, the USD bulls were rescued by better tone seen in Treasury yields across the curve, which lifted the USD index back beyond 97 handle.
However, the retreat remains restricted as the Euro remains underpinned by better-than expected manufacturing reports from across the Euro area. More so, markets doubt whether the USD recovery across the board will sustain, in response to concerns over further US rate rises, given softening US inflation outlook.
With the Eurozone PMIs out of the way, all eyes now remain on the US manufacturing and services PMIs, followed by new homes sales data and Fedspeaks for further momentum.
EUR/USD Technical Levels
Valeria Bednarik, Chief Analyst at FXStreet explains: “The 4 hours chart shows that the price continues advancing above its 20 and 200 SMAs, both converging around 1.1150/60, while technical indicators aim north within positive territory. The 100 SMA continues capping the upside around 1.1220, the level to surpass to confirm additional gains ahead, with the next resistances at the 1.1250 region and 1.1300. Below 1.1150, chances will turn towards the downside, with the next support in the 1.1110/20 price zone.”
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