EUR/USD slightly off lows after US data, remains under pressure near 1.1800
- US data: ISM non-manufacturing missed estimates.
- USD retreats after data and then recovers.
- EUR/USD holds bearish tone.
The EUR/USD pair attempted to move off daily lows following the release of US data but it found resistance at 1.1840. It is hovering around 1.1830 with a bearish tone, still near the 1.1800 handle.
American session: USD remains strong
The greenback rose after the beginning of the American session and pushed EUR/USD to 1.1811, the lowest level since last Thursday. The slide eased before the 1.1800 area. Following the release of US data, it rose to 1.1842.
The Markit’s services PMI and the ISM non-manufacturing dropped in November to 54.5 (vs 55.4 expected) and 57.4 (vs 59.0), respectively. The data weakened the demand for the US dollar momentarily. Regarding data, on Wednesday attention will be on the ADP employment report ahead of Friday’s NFP. Also, the focus remains on the US political scenario and at the US Congress with several debates taking place, including the debt ceiling.
US: Non-manufacturing sector grew at a slower rate in November - ISM
US: Service sector output expansion softens to 5-month low - Markit
Levels to watch
EUR/USD remains clearly below the 20-hour moving average that stands at 1.1855, with momentum pointing to the downside. As long as it remains above 1.1800, slides are likely to be limited. A decline under that level could clear the way to more losses with a potential target at 1.1755/60.
On the upside, if the par rises above 1.1850/55 it could gain short-term momentum for a test of 1.1875 (daily high). A break above would favor an extension to 1.1895 (Friday’s close) closing the bearish gap. On a wider perspective, the key resistance remains 1.1930: a close significantly on top would signal more gains ahead.