EUR/USD finds support around 1.1750 ahead of PMIs
|- The pair resumes the downside, trading in the 1.1760/65 band so far.
- The greenback extends the bounce off Tuesday’s low to 93.70.
- Advanced PMIs in Euroland next on tap ahead of FOMC minutes.
The single currency stays on the back foot on Wednesday and is now taking EUR/USD to the 1.1765/700 band ahead of the opening bell in the Old Continent.
EUR/USD looks to PMIs, FOMC
After yesterday’s bull run to the 1.1830 region, the pair lost upside momentum and retreated to the mid-1.1700s during early trade amidst the re-emergence of the risk-off trade and a rebound in the greenback.
In fact, US-China trade talks appear stalled while the meeting between President Trump and the North Korean leader seems to have lost some traction as of late. On the Italian front, President S.Mattarella could appoint G.Conte as Prime Minister, while the attention should also be on the likely appointment of P.Savona – who favours an euro exit - as Finance Minister.
The greenback, in the meantime, rebounded following lows near 93.30 on Tuesday and despite yields of the US 10-year note are navigating weekly lows around 3.05%.
Later in the session, advanced May’s PMIs in Euroland are due ahead of the publication of the FOMC minutes.
EUR/USD levels to watch
At the moment, the pair is losing 0.11% at 1.1767 and a breakdown of 1.1717 (2018 low May 21) would target 1.1668 (low Oct.8 2017) en route to 1.1659 (monthly low Oct. 27 2017). On the flip side, the next resistance aligns at 1.1829 (high May 22) seconded by 1.1835 (10-day sma) and finally 1.1921 (21-day sma).
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