EUR/USD slides closer to 1.23 handle post-EZ PMIs
| • Stronger USD continues to exert downward pressure.
• Weaker EZ PMI adds to the weaker sentiment.
• Focus remains on the FOMC meeting minutes.
The EUR/USD pair finally broke out of its Asian session bearish consolidation phase and dropped to fresh one-week lows in the last hour.
Against the backdrop of a strong follow-through US Dollar buying interest, the pair lost some additional ground following the release of slightly softer than expected French/German PMI prints.
Adding to the disappointment, the composite Euro-zone PMI also fell short of consensus estimates and further collaborated towards denting already weaker sentiment surrounding the shared currency.
The pair, however, has managed to hold its neck above the 1.2300 handle as traders seemed to refrain from placing aggressive bets ahead of today's key event risk - the highly anticipated FOMC meeting minutes, due for release later in the day.
In the meantime, existing home sales data from the US would be looked upon to grab some short-term trading opportunities during the early NA session.
Technical levels to watch
On a sustained break below the 1.2300 mark, the pair is likely to accelerate the fall towards 1.2260-55 intermediate support en-route the 1.2200 key support. On the flip side, 1.2365 level might now act as an immediate hurdle and is closely followed by the 1.2400 handle.
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