EUR/USD struggles around 1.0760 post-US data

The greenback is now losing some upside momentum, helping EUR/USD to recover some ground lost and retake the vicinity of 1.0770, close to session tops.

EUR/USD eyes on US data

Spot is extending its bounce off session lows, as the initial bid tone around the greenback seems to have run out steam despite better-than-expected manufacturing PMI results. In fact, Markit’s advanced manufacturing PMI has come in at 55.1 for the current month, surpassing consensus and reaching levels last seen in April 2015.

On the not so bright side, December’s Existing Home Sales dropped to 5.49 M units, or a 2.8% drop.

In the meantime, investors will continue to look to Trump’s administration in order to get any clues on the potential path of the greenback in the near to medium term. It is worth mentioning that the buck saw its uptrend sharply reverted after President Trump and some government noted the ‘strong’ USD could hurt exports.  

While EUR has already shrugged off the dovish message from the ECB at its meeting last week, market participants will now turn their attention to the upcoming FOMC meeting, with the probability of another 25 bp rate hike at 97% according to CME Group’s FedWatch tool based on Fed Funds future prices.

EUR/USD levels to watch

The pair is now losing 0.07% at 1.0759 and a breakdown of 1.0682 (low Jan.23) would target 1.0645 (short-term support line) and finally 1.0600 (20-day sma). On the upside, the next hurdle is located at 1.0773 (high Jan.23) followed by 1.0798 (high Dec.5) and then 1.0873 (high Dec.8).