EUR/USD unable to find follow through above 1.3000

FXstreet.com (Barcelona) - After trading sharply higher the two previous days, EUR/USD was unable to find any additional follow through and finished the day down 48 pips at 1.2996. It will be a busy day of economic data out of the EU with a number of PMI reports due out in the coming session.

According to Marc Chandler, Head Currency Strategist at BBH, “It is noteworthy that the euro was turned back, just when the dollar bears thought they were gaining the edge, in front of the downtrend line drawn off the early-Feb's and May's highs, which came in near $1.3080. The euro's low thus far this year is about $1.2745, it has only closed once below $1.2800."

Chandler went on to add, “We suspect the euro bears may be frustrated by the fundamental developments in the form of upticks in the final reading of the May PMIs and an ECB that refrains from pushing the deposit rate below zero. Nor do we expect US non-farm payrolls to re-accelerate significantly from the 152k of the previous two months, which is marked slower than then the 240k pace seen in the prior two-month period”

The FXStreet.com Trend Index remains slightly bullish on the daily chart, while the OB/OS index reads Neutral. Initial support sits at 1.2952 (the 20dma), followed by 1.2840 (consolidation base on 1 hour chart). Initial resistance sits at 1.3059 (previous day high) followed by 1.3110 (the 100dma).

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