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EUR/USD: 1.1730 support still on sight ahead of EZ PMIs

EUR/USD: 1.1730 support still on sight ahead of EZ PMIs

  • UST’s, USD selling persists in Asia
  • Eyes on Euro area flash manufacturing PMIs

Fresh bids emerged for the spot once again near 1.1730 – key support, allowing a tepid recovery in EUR/USD, now extending into Asia amid persistent USD softness, as focus shifts towards a fresh batch of Euro area flash manufacturing PMI reports for fresh trading impetus.

EUR/USD: Will it sustain above 100-DMA at 1.1756?

The EUR bulls breathed a sigh of relief in the overnight trades, after the US dollar was pushed lower across the board on Wall Street selling and increased anxiousness on who the next Fed Chair will be (Taylor or Warsh), as the US President Trump said that he is very, very close to decide on the next Fed Governor. Taylor is widely considered a hawk, while Warsh is somebody that is anti-regulation, which is expected to be supportive for the US corporates.

So far this session, the EUR/USD pair extended the recovery mode, as weakness around the US Treasury yields and greenback continued, while cautious trading seen in on the Asian equities also kept the sentiment underpinned around the funding currency Euro.

However, it remains to be seen if the pair can sustain the recovery, in the wake of Spain – Catalonia stand-off, with all eyes set on the Catalan Parliament’s meeting Thursday morning to decide the response to direct rule from Madrid.

Meanwhile, expectations of slightly downbeat Euro area flash manufacturing PMI reports could also restrict the recovery gains in the major below the key resistance area near 1.1780/90, the confluence of 20, 5 & 10-DMAs.

EUR/USD Technical View

Valeria Bednarik, Chief Analyst at FXStreet, explained: “The pair has bounced multiple times from the 1.1720 region ever since early August, yet a break below it should favor a downward movement towards the stronger 1.1660 price zone, where the pair bottomed in August and September. Support levels: 1.1720 1.1690 1.1660 Resistance levels: 1.1780 1.1825 1.1860.”

 

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