The EUR/USD pair renewed its session low at 1.1626 in the last hour and started to consolidate its losses. As of writing, the pair is trading at 1.1637, still losing 0.23% on the day.
The selling pressure seen on the pair on Monday seems to be the product of the greenback's mild recovery. At the moment, the US Dollar Index is at 93.87, up 0.1% on the day. Although today's data are not considered as major market movers, the better-than-expected PMI readings may have provided an additional support for the USD. According to the data released by Markit, preliminary readings for July Manufacturing PMI advanced to 53.2 from 52 in June, beating the market consensus of 52.1. Additionally, the PMI for the service sector remained unchanged at 54.2.
On the other hand, existing home sales in the U.S. contracted by 1.8% on a monthly basis in June amid a lack of supply according to the National Association of Realtors.
Nevertheless, today's price action is not convincing enough to assume that the greenback is on the verge of starting a deep correction. Investors remain focused on the political developments in the U.S. Reuters recently reported that Jared Kushner, President Donald Trump's son-in-law, and a senior White House adviser is going to make a statement after his interview with the Senate Intelligence Committee today, possibly bringing some volatility to the markets.
Technical outlook
1.1713 (Aug. 24, 2015, high) remains as the next important for the hurdle. A decisive break above this level could allow the pair to record further gains towards 1.1790 (Jan. 15, 2015, high) and 1.1870 (Jan. 11, 2015, high). On the flip side, 1.1616 (former resistance) could be seen as the first technical support ahead of 1.1500 (psychological level) and 1.1395 (Jul. 12 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%. The decision aligned with the market expectations. Governor Ueda's presser eyed.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.