The single currency keeps the negative tone on Monday following the release of EMU’s PMI, with EUR/USD navigating the lower end of the range around 1.1640/30.
EUR/USD offered on PMI, USD-buying
The renewed albeit tepid recovery in the demand for the greenback is forcing spot to recede from highs near 1.1690 seen during overnight trade to the current 1.1640/30 band.
The down move is reinforced by poor prints from the advanced PMIs in both Germany and the euro bloc for the current month, while France’s results came in mixed.
The ongoing squeeze lower is somewhat expected by market participants in light of the sharp ascent of the pair as of late, overbought levels gauged by the daily RSI and activity in EUR futures markets.
However, the underlying bullish sentiment around EUR also stays underpinned by the positioning front, where net longs kept rising in the week to July 18 as per the latest CFTC report, this time to the highest level since late December 2011.
EUR/USD levels to watch
At the moment, the pair is losing 0.20% at 1.1641 facing the immediate support at 1.1523 (10-day sma) followed by 1.1477 (low Jul.20) and finally 1.1442 (21-day sma). On the upside, a breakout of 1.1684 (high Jul.24) would target 1.1713 (monthly high Aug.24) and then 1.1800 (psychological level).
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