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EUR/USD wobbling around 1.2600

FXStreet (Edinburgh) - The common currency moves in a narrow range on Wednesday, with EUR/USD hovering around 1.2600 the figure.

EUR/USD weaker post-PMIs

The generalized softer tone from the final manufacturing PMIs in the region during September hit the EUR in the European morning, dragging spot to fresh lows around 1.2580. The scenario appears quite grim for the single currency in light of tomorrow’s ECB meeting, as recent disappointment data from consumer prices and today’s PMIs might prompt the central bank to announce further easing measures. “The unexpected break below the strong support at 1.2670 resulted in a sharp drop towards a fresh 2-year low of 1.2571. Despite the rebound from the low, the down-move appears incomplete. For today, expect 1.2670 to as act a cap for a retest of the 1.2570/75 support”, noted Quek Ser Leang, Market Strategist at UOB Group.

EUR/USD key levels

The pair is now losing 0.19% at 1.2906 with the next support at 1.2571 (2014 low Sep.30) ahead of 1.2561 (low sep.6 2012) and finally 1.2502 (76.4% of 1.2042-1.3995). On the flip side, a breakout of 1.2664 (low Sep.29) would open the door to 1.2715 (high Sep.29) and then 1.2761 (high Sep.26).

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