EUR/USD refreshes session lows, slides farther below 1.1900 handle
• Upbeat EZ PMIs fail to inspire bulls.
• A modest USD uptick prompts fresh selling.
• US ISM/Fedspeaks eyed for fresh impetus.
The EUR/USD pair quickly reversed a spike to session high level of 1.1940, with bears now dragging the pair farther below the 1.1900 handle.
The pair stalled its strong up-move from the 1.1800 neighborhood, triggered by the US tax bill vote suspension, and failed to benefit from today's mostly in-line EZ PMI prints.
The pull-back, since the early European session, lacked any obvious triggers and could be attributed to some profit taking, especially after an upsurge of around 130-pips from over one-week lows touched yesterday.
Meanwhile, investors now seemed to look past the latest tax bill chaos, with a modest pickup in the US Dollar demand further collaborated to the pair's retracement over around 50-pips from session tops.
Currently placed at the lower end of its daily trading range, around 1.1885 level, traders now look forward to the release of US ISM manufacturing PMI, along with speeches by St. Louis Fed President James Bullard, Dallas Fed President Robert Steven Kaplan and Philly Fed President Patrick Harker, for some fresh short-term trading opportunities.
Technical levels to watch
A follow-through weakness is likely to get extended towards mid-1.1800s, below which the pair is likely to aim back towards challenging the 1.1800 handle.
On the upside, any recovery attempts back above the 1.1900 handle might continue to confront fresh supply near 1.1940 area, which if cleared might now negate any near-term bearish bias.