EUR/USD in fresh highs, targets 1.1750

EUR/USD pushes higher and approaches 1.1750.
German, EMU PMIs disappointed expectations in August.
US flash Manufacturing PMI surprised to the downside.

Pablo Piovano FXStreet

EUR/USD picks up extra pace towards the end of the European session and already trades at shouting distance from the 1.1750 level on Monday.

EUR/USD bounces off 1.1660

EUR/USD met dip-buyers near 1.1660 towards the end of last week. That, plus oversold conditions have encouraged the pair to regain the 1.1700 mark and above on Monday, reaching at the same time new 3-day highs.

It is all about dollar weakness on Monday, as investors continue to cash up gains in light of the recent strong advance in the US Dollar Index (DXY) ahead of the key Jackson Hole Symposium later this week.

Data wise in Euroland, the pair has practically ignored the disappointing results from preliminary PMIs in the core bloc. Despite missing estimates, the readings remain well into the expansion territory, although they could have peaked in July.

Across the pond, flash Manufacturing PMI also missed consensus at 61.2 for the current month.

Later in the session, the European Commission will publish the flash gauge of the Consumer Sentiment and Existing Home Sales will close the US calendar.

EUR/USD levels to watch

So far, spot is gaining 0.29% at 1.1733 and faces the next hurdle at 1.1804 (weekly high Aug.13) followed by 1.1829 (50-day SMA) and finally 1.1908 (monthly high Jul.30). On the other hand, a breakdown of 1.1663 (2021 low Aug.20) would target 1.1612 (monthly low Oct.20 2020) en route to 1.1602 (monthly low Nov.4 2020).

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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