EUR/USD stays negative above 1.2300
|- The pair keeps the negative territory above the 1.2300 handle so far.
- The greenback is now bid and looing to regain the 89.80 area.
- US 10-year yields extend the drop to 2.81% zone.
The selling pressure stays unabated around the European currency during the second half of the week and is now prompting EUR/USD to navigate the 1.2320/15 band.
EUR/USD faltered ahead of 1.2400, looks to EU Summit
Spot is prolonging the choppy trade so far this week, coming down to the low-1.2300s after the earlier bullish attempt run out of legs ahead of the key resistance line off 2018 tops, today in the 1.2380/85 band.
Adding to the weak note surrounding EUR, advanced PMIs in core Euroland for the current month came in below initial estimates along with weaker results from the German IFO for the month of March.
It is worth mentioning that spot gained traction as of late as market participants perceived yesterday’s move on rates by the Federal Reserve as dovish, disappointing expectations of a more aggressive rate path for the current year.
In the US docket, Initial Claims rose 229K WoW, taking the 4-Week Average to 223.75K from 221.50K. Additionally, Markit’s Manufacturing PMI came in at 55.7, a tad below consensus albeit higher than February’s 55.3.
EUR/USD levels to watch
At the moment, the pair is losing 0.16% at 1.2318 facing immediate contention at 1.2241 (low Mar.21) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the flip side, a break above 1.2388 (high Mar.22) would aim for 1.2414 (high Mar.14) and then 1.2448 (high Mar.8).
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