The single currency has reverted part of its earlier losses vs. the greenback, now taking EUR/USD to the 1.0880/85 band.
EUR/USD focus on PMIs, Fedspeak
The pair seems to have found some decent support around the 1.0860 area at the beginning of the week, regaining some pips early in the European morning and managing to reclaim the positive territory.
The ongoing USD rally seems to have run out of steam at the moment, allowing the current rebound in spot after last week’s deep pullback from peaks near 1.1040.
In the data space, advanced Manufacturing/Services PMIs for the current month are due in Europe today. Across the pond, Markit’s flash Manufacturing PMI and the Chicago Fed National Activity index are also due along with speeches by NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral).
On the data front, EUR speculative net shorts have increased to the highest level since late July, with shorts back to levels last seen in early November 2014 and longs up to levels seen in January 2012.
EUR/USD levels to watch
The pair is now up 0.02% at 1.0884 facing the next resistance at 1.0952 (2014-2016 resistance line) followed by 1.1009 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).
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