EUR/USD hangs near its lowest level since early May, seems vulnerable below 1.0700 mark

EUR/USD struggles to attract any meaningful buyers and is undermined by a combination of factors.
Political uncertainty in Europe, along with Friday’s dismal Eurozone PMIs, seems to weigh on the Euro.
The Fed’s relatively hawkish stance lifts the USD to a multi-week top and further acts as a headwind.

Haresh Menghani FXStreet

The EUR/USD pair remains depressed for the third straight day on Monday and trades around the 1.0690-1.0685 region during the Asian session, just above its lowest level since early May.

The shared currency continues to be undermined by uncertainties about the outcome of a snap election in France, which has been fueling concerns that a new government will worsen the fiscal situation in the Eurozone's second-largest economy. Furthermore, the flash PMIs released on Friday indicated that the growth of business activity in the Eurozone slowed sharply in June. This, along with some follow-through US Dollar (USD) buying, turns out to be key factors exerting downward pressure on the EUR/USD pair.

The USD Index (DXY), which tracks the Greenback against a basket of currencies, advances to its highest level since May 9 in the wake of Friday's flash PMI, which showed the US business activity crept up to a 26-month high in June. The data backs the case for the Federal Reserve's (Fed) patient approach, though signs of easing inflationary pressure keep a September rate cut on the table. This might hold back the USD bulls from placing aggressive bets and help limit any further depreciating move for the EUR/USD pair.

Traders might also prefer to wait for this week's release of the US Personal Consumption Expenditures (PCE) Price Index data on Friday for cues about the Fed's rate-cut path. This, in turn, will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the EUR/USD pair. Traders now look to the release of German IFO Business Climate and speeches by influential FOMC members to grab short-term opportunities in the absence of any relevant macroeconomic releases from the US.

EUR/USD

Overview
Today last price	1.0689
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	1.0693

Trends
Daily SMA20	1.0795
Daily SMA50	1.0769
Daily SMA100	1.0796
Daily SMA200	1.0789

Levels
Previous Daily High	1.0721
Previous Daily Low	1.0671
Previous Weekly High	1.0762
Previous Weekly Low	1.0671
Previous Monthly High	1.0895
Previous Monthly Low	1.065
Daily Fibonacci 38.2%	1.069
Daily Fibonacci 61.8%	1.0702
Daily Pivot Point S1	1.0669
Daily Pivot Point S2	1.0645
Daily Pivot Point S3	1.0619
Daily Pivot Point R1	1.0719
Daily Pivot Point R2	1.0745
Daily Pivot Point R3	1.0768

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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