EUR/USD: 1.1880 – a tough nut to crack, EZ services PMI eyed
- DXY stalls corrective slide.
- Watch out for EUR/GBP price-action.
- Euro area final services PMIs on tap.
The EUR/USD pair is seen trading almost unchanged near 1.1865 region, having failed once against to take-out the stiff resistances located at the 5 & 10-DMA confluence near 1.1880 levels.
EUR/USD: Bears fighting for control ahead of PMIs
The spot stalled its Asian recovery and now turns negative in the early European trading, as the US dollar catches a fresh bid-wave across its main competitors, after the brief corrective stint. The USD index bounces-off 93 handle to now trade at session tops of 93.10, up 0.05% on the day. The latest leg up in the greenback is mainly driven the renewed strength seen around 10-year Treasury yields, rising 1.30% to 2.394% from 2.383% seen in Asia.
The sentiment around the Euro also remains undermined by the downbeat Eurozone Sentix investors’ confidence and PPI data released a day before, as attention now turns towards the Euro area final services PMI releases due later in the European session. However, the downside may remain capped amid cross-driven strength, as the EUR/GBP cross is likely to benefit from broad GBP weakness amid looming uncertainty over the Brexit deal.
Later in the NA session, the pair will get influenced by the US trade balance and ISM services PMI data alongside the sentiment on the Wall Street.
EUR/USD Technical Levels
Haresh Menghani, Analyst at FXStreet, writes: “From current levels, any bullish momentum beyond the 1.1900 handle is likely to confront fresh supply near the 1.1920-25 region, marking a short-term descending trend-channel resistance. A sustained move beyond the mentioned hurdle would indicate a bullish break and pave the way for an extension of the pair's upward trajectory.”
“Alternatively, weakness below the short-term ascending trend-line support could get extended but is likely to find some buying interest at the descending trend-channel support near the 1.1800-1.1790 region. A decisive break below the channel would negate any near-term bullish bias and turn the pair vulnerable to accelerate the fall towards mid-1.1700s en-route the 1.1720-15 strong horizontal support,” Haresh adds.