EUR/USD: Recovery runs into 1.0900 barrier ahead of PMIs
The bulls take a breather after a solid Asian recovery, keeping EUR/USD capped below 1.09 handle in anticipation of mixed final services PMI data from across the Euro area economies.
The EUR/USD halted its recovery from three-day troughs in tandem with a stalled minor-correction in the greenback against its major rivals, as markets expect another selling-wave in the spot, once European trading gets underway.
The European traders will react to a slightly hawkish Fed decision, and trigger next leg higher in the US dollar. The Fed brushed-off Q1 GDP weakness and said that inflation and labour market continue their upward trajectory, which lifted odds of a June Fed rate hike.
Looking ahead, focus now remains on the final PMI readings and retail sales data from the Euroland, followed by the US dataflow and ECB Draghi’s speech due later in the NA session.
EUR/USD Technical Levels
Technical resistances for the pair are aligned at 1.0949/51 (Apr 28 & 24 high), 1.0981 (classic R3) and finally 1.1000 (key resistance). On the flip side, the spot finds next support at 1.0880 (May 3 low), a break below that level could open the door to 1.0855/50 (Arp 28 & 27) and 1.0819 (Apr 24 low).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
