EUR/USD stalls recovery, refreshes daily lows near 1.1830

EUR/USD’s pullback from the corrective slide faced resistance near the daily pivot of 1.1855, knocking off the rate back towards the lower bound of today’s trading range.

EUR/USD: Focus shifts to BOE, US data

The latest leg down in EUR/USD can be mainly attributed to mixed Eurozone final services PMIs, which left the Euro little impressed.

European Monetary Union Markit PMI Composite came in at 55.7 below forecasts (55.8) in July

Germany Markit Services PMI registered at 53.1, below expectations (53.5) in July

Also, the spot suffers on the back of renewed buying interest seen in the greenback against its six main competitors. The USD index advances +0.10% to flirt with daily tops of 92.89.

Meanwhile, heavy losses witnessed in the EUR/GBP cross amid strengthening Cable on solid UK services PMI and ahead of the BOE policy decision, further adds to the renewed weakness in the main currency pair.

All eyes now remain on the BOE policy outcome for fresh trading impetus, while the US ISM services PMI and factory orders data will be also closely watched.

EUR/USD Technical Set-up  

According to Valeria Bednarik, Chief Analyst at FXStreet: “In the 4 hours chart, the RSI indicator heads marginally lower around 62, while the Momentum stands flat around its mid-line, as the price continues holding above a firmly bullish 20 SMA, at 1.1820. Tuesday's low at 1.1785 is the key support, as below it, the downward corrective movement can gather momentum and extend down to 1.1750 first, and 1.1715 later on the day. A recovery above 1.1870 on the other hand, should see the pair returning to the 1.1910 level, en route to 1.1950.”