EUR/USD around 1.2320 on US ISM

Spot remains parked just above 1.2300 on US ISM.
USD sticks to daily gains above the 90.00 milestone.
US ISM Non-manufacturing surprised to the upside at 59.5.

Pablo Piovano FXStreet

EUR/USD keeps the daily range at the beginning of the week, orbiting around the 1.2300 handle amidst the absence of clear direction.

EUR/USD unchanged on US data

The pair maintained the erratic performance so far today in the 1.2300 neighbourhood, finding good support around 1.2280 while gains appear limited in the 1.2365/70 band.

EUR practically posted no reaction to the better-than-expected US ISM Non-manufacturing, which came in at 59.5 for the month of February vs. 58.9 initially forecasted albeit a tad lower than January’s 59.8.

In the meantime, the unclear political scenario in Italy following the victory of 5-Star Movement (32.5%) has opened the door to a period of rising uncertainty, speculations and negotiations ahead of the formation (or not) of a coalition government.

Looking ahead, the ECB meeting will be the salient event for EUR on Thursday, although market participants expect no significant changes in either the central bank’s statement or Draghi’s presser.

EUR/USD levels to watch

At the moment, the pair is losing 0.02% at 1.2314 with immediate contention emerging at 1.2206 (low Feb.9) seconded by 1.2195 (low Jan.18) and finally 1.2153 (low Mar.1). On the upside, a breakout of 1.2365 (high Mar.5) would target 1.2401 (short-term resistance line) and then 1.2557 (2018 high Feb.18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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