EUR/USD flirting with lows post-US trade data, ISM PMI next
• Surging US bond yields/tax bill optimism underpinning USD.
• Weaker US trade data fails to lend any support.
• US ISM PMI now looked upon for fresh impetus.
The EUR/USD pair once again stalled its mid-European session uptick near the 1.1875 region and refreshed session lows during the early NA session.
The approval of a major tax reform plan by the US Senate, coupled with the ongoing upsurge in the US Treasury bond yields continued to support demand for the greenback and has been one of the key factors weighing on the major.
Hence, the pair's slide over the past couple of hours, which lacked any fundamental trigger lacked, was solely led by a modest pickup in the US Dollar demand.
Meanwhile, the downward pressure remained unabated despite a weaker-than-expected US trade balance data, showing deficit rose more than expected to $47.5 billion during October.
Today's US economic docket also features the release of ISM non-manufacturing PMI for November, which would be looked upon for some short-term trading opportunities.
Valeria Bednarik, American Chief Analyst at FXStreet writes: "The technical picture is bearish according to the 4 hours chart, given that the pair continues finding selling interest on attempts to surpass its 20 SMA, now horizontal around 1.1875. Technical indicators in the mentioned chart extended their declines within negative territory, maintaining their downward slopes. However, the pair needs to break below the 1.1800/10 price zone to be able to extend its decline, with the next relevant resistance at 1.1760, en route to the 1.1720 price zone. A recovery above 1.1890 on the other hand, should favor additional intraday gains up to 1.1930."