The EUR/USD pair renewed its session low at 1.1626 in the last hour and started to consolidate its losses. As of writing, the pair is trading at 1.1637, still losing 0.23% on the day.
The selling pressure seen on the pair on Monday seems to be the product of the greenback's mild recovery. At the moment, the US Dollar Index is at 93.87, up 0.1% on the day. Although today's data are not considered as major market movers, the better-than-expected PMI readings may have provided an additional support for the USD. According to the data released by Markit, preliminary readings for July Manufacturing PMI advanced to 53.2 from 52 in June, beating the market consensus of 52.1. Additionally, the PMI for the service sector remained unchanged at 54.2.
On the other hand, existing home sales in the U.S. contracted by 1.8% on a monthly basis in June amid a lack of supply according to the National Association of Realtors.
Nevertheless, today's price action is not convincing enough to assume that the greenback is on the verge of starting a deep correction. Investors remain focused on the political developments in the U.S. Reuters recently reported that Jared Kushner, President Donald Trump's son-in-law, and a senior White House adviser is going to make a statement after his interview with the Senate Intelligence Committee today, possibly bringing some volatility to the markets.
Technical outlook
1.1713 (Aug. 24, 2015, high) remains as the next important for the hurdle. A decisive break above this level could allow the pair to record further gains towards 1.1790 (Jan. 15, 2015, high) and 1.1870 (Jan. 11, 2015, high). On the flip side, 1.1616 (former resistance) could be seen as the first technical support ahead of 1.1500 (psychological level) and 1.1395 (Jul. 12 low).
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