EUR/USD reclaims 1.1600 and beyond on US data

The pair clinches highs above 1.1600 the figure.
Softer greenback allows the squeeze higher in spot.
US Philly Fed disappointed expectations in June.

Pablo Piovano FXStreet

The now selling bias around the greenback is lifting EUR/USD to fresh peaks above the 1.1600 handle following disappointing US data releases.

EUR/USD regains 1.1600 and above

The pair managed to quickly leave behind the area around 1.1500 the figure and regain more than a cent after the US Philly Fed manufacturing index dropped to 19.9 for the month of June, the weakest level since November 2016 and the biggest drop since February 2014.

Further US data saw Initial Claims rising at a weekly 218K, bettering initial consensus and taking the 4-Week Average to 221.00K from 225.00K.

The pair turned positive in the wake of poor US data, while the US Dollar Index (DXY) dropped to sub-95.00 levels after clinching fresh YTD peaks above 95.50 during early trade.

EUR/USD levels to watch

At the moment, the pair is gaining 0.14% at 1.1590 facing the next resistance at 1.1646 (high Jun.19) seconded by 1.1661 (10-day sma) and finally 1.1674 (21-day sma). On the downside, a breakdown of 1.1509 (low Jun.21) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017).

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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