The single currency keeps the negative tone on Monday following the release of EMU’s PMI, with EUR/USD navigating the lower end of the range around 1.1640/30.
EUR/USD offered on PMI, USD-buying
The renewed albeit tepid recovery in the demand for the greenback is forcing spot to recede from highs near 1.1690 seen during overnight trade to the current 1.1640/30 band.
The down move is reinforced by poor prints from the advanced PMIs in both Germany and the euro bloc for the current month, while France’s results came in mixed.
The ongoing squeeze lower is somewhat expected by market participants in light of the sharp ascent of the pair as of late, overbought levels gauged by the daily RSI and activity in EUR futures markets.
However, the underlying bullish sentiment around EUR also stays underpinned by the positioning front, where net longs kept rising in the week to July 18 as per the latest CFTC report, this time to the highest level since late December 2011.
EUR/USD levels to watch
At the moment, the pair is losing 0.20% at 1.1641 facing the immediate support at 1.1523 (10-day sma) followed by 1.1477 (low Jul.20) and finally 1.1442 (21-day sma). On the upside, a breakout of 1.1684 (high Jul.24) would target 1.1713 (monthly high Aug.24) and then 1.1800 (psychological level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0400 as mood sours
EUR/USD loses its traction and retreats to the 1.0400 area in the second half of the day on Monday. The negative shift seen in risk mood, as reflected by Wall Street's bearish opening, supports the US Dollar and makes it difficult for the pair to hold its ground.
GBP/USD drops below 1.2600 on renewed USD strength
GBP/USD turns south and drops toward 1.2550 after reaching a 10-day-high above 1.2600 earlier in the day. In the absence of high-tier macroeconomic data releases, the US Dollar benefits from the souring risk mood and weighs on the pair.
Gold holds steady above $2,600 following previous week's choppy action
Gold fluctuates in a tight range above $2,600 in the American session on Monday. The benchmark 10-year US Treasury bond yield is down more than 1% on the day, helping XAU/USD find support despite the renewed US Dollar (USD) strength.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.