- The pair remains depressed below the key 1.2200 handle.
- Decent support appears to have emerged around 1.2180.
- Spot ignored PMIs, now looks to US ISM and Powell.
The demand for the single currency remains absent so far this week, forcing EUR/USD to drop to the area of 1.2180 earlier in the session, where it seems to have met some dip-buyers.
EUR/USD now looks to US docket, Powell
After bottoming out in fresh 6-week lows around 1.2180, the pair seems to have found some buying interest and is now looking to regain the 1.2200 neighbourhood amidst the persistent upside pressure in the buck.
Earlier in the session, final manufacturing PMIs in the euro area for the month of January came in on the strong side, although traders largely ignored the results as the focus remain on the US docket and the second testimony by Fed’s Powell.
The current rebound in spot came along a correction lower in yields of the US 10-year reference, which are now navigating session lows near 2.84%.
Later in the NA session, inflation figures tracked by the PCE are due, seconded by Personal Income/Spending, ISM manufacturing and Powell’s testimony before the Senate Banking Committee.
In addition, New York Fed and permanent voter W.Dudley (centrist) is also due to speak later in the NA session.
EUR/USD levels to watch
At the moment, the pair is losing 0.06% at 1.2186 and a breach of 1.2180 (low Mar.1) would target 1.2167 (50% Fibo of 2014-2017 drop) en route to 1.2165 (low Jan.18). On the upside, the immediate hurdle is located at 1.2301 (10-day sma) seconded by 1.2337 (21-day sma) and then 1.2356 (high Feb.26).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.