- The pair corrects lower after failing to climb beyond 1.1630.
- The greenback grabs some buying interest and retakes 95.50.
- PMIs in Euroland and ECB minutes next on tap in the docket.
After failing to advance further north of the key resistance region at 1.1630, EUR/USD has embarked in a correction lower to the current mid-1.1500s.
EUR/USD looks to PMIs, ECB
After six consecutive sessions with gains, the pair is now trading on the defensive as EUR-bulls failed to extend the rally beyond 1.1600 the figure on a more sustainable fashion.
The inability of spot to break higher motivated sellers to step in, dragging spot lower along with a pick up in the demand for the buck. In fact, the US Dollar Index (DXY) me support in the 95.00 neighbourhood, attracting dip-buyers.
In the data space, the ECB will publish its minutes from the latest minutes while advanced PMIs for the month of August are also due for release. Across the pond, the usual weekly report on the labour market is expected seconded by flash PMIs and July’s New Home Sales.
EUR/USD levels to watch
At the moment, the pair is losing 0.27% at 1.1564 and a break below 1.1539 (21-day SMA) would target 1.1453 (10-day SMA) en route to 1.1299 (2018 low Aug.15). On the upside, the next hurdle emerges at 1.1623 (high Aug.22) seconded by 1.1629 (high Aug.8) and finally 1.1745 (high Jul.31).
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