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1 Jul 2014
EUR/USD capped by 1.3700
FXStreet (Edinburgh) - The single currency is now retreating marginally on Tuesday, pushing the EUR/USD back to the 1.3685/80 area.
EUR/USD focus on PMIs
In a context dominated by the risk appetite, the EUR managed to recover ground lost and post multi-week highs just below the 1.3700 handle at the beginning of the week. Better-than-expected Chinese manufacturing PMI also added to the sentiment in early Asian trade, propping up the bid tone in the risk-associated universe. Ahead in the day, final manufacturing PMIs in the euro area will set the tone in the markets ahead of EMU’s unemployment figures for the month of May. Of note across the pond will be the Markit PMI and the ISM Manufacturing PMI. “While we anticipated further strengthening in EUR, the overnight rally was stronger and more rapid than expected as it easily took out the resistant at 1.3665/70. Strong upward momentum suggests that the current up-move will continue for today. Expect 1.3660/65 to hold for a move towards 1.3715/20”, noted Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD key levels
The pair is now losing 0.09% at 1.3678 with the next support at 1.3565 (low Jun.20) followed by 1.3542 (low Jun.18) and then 1.3536 (low Jun.17). On the flip side, the initial hurdle lines up at 1.3700 (psychological level).
EUR/USD focus on PMIs
In a context dominated by the risk appetite, the EUR managed to recover ground lost and post multi-week highs just below the 1.3700 handle at the beginning of the week. Better-than-expected Chinese manufacturing PMI also added to the sentiment in early Asian trade, propping up the bid tone in the risk-associated universe. Ahead in the day, final manufacturing PMIs in the euro area will set the tone in the markets ahead of EMU’s unemployment figures for the month of May. Of note across the pond will be the Markit PMI and the ISM Manufacturing PMI. “While we anticipated further strengthening in EUR, the overnight rally was stronger and more rapid than expected as it easily took out the resistant at 1.3665/70. Strong upward momentum suggests that the current up-move will continue for today. Expect 1.3660/65 to hold for a move towards 1.3715/20”, noted Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD key levels
The pair is now losing 0.09% at 1.3678 with the next support at 1.3565 (low Jun.20) followed by 1.3542 (low Jun.18) and then 1.3536 (low Jun.17). On the flip side, the initial hurdle lines up at 1.3700 (psychological level).