EUR/USD struggles below 1.2200 ahead of data, Powell

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.

Pablo Piovano FXStreet

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).

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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