2 Jun 2014
EUR/USD challenges 1.3600
FXStreet (Edinburgh) - The selling pressure around the shared currency is now gathering steam, dragging the EUR/USD to the boundaries of the critical support at 1.3600.
EUR/USD hit by PMI data
The pair is giving away earlier losses, falling from the 1.3635/30 region after the final manufacturing PMIs from euro zone members disappointed investors in May. Only the French print surpassed forecasts, although came in lower from the previous month. In the opinion of Jens Pedersen, Analyst at Danske Bank, “the market will probably stay relatively calm ahead of the all important ECB meeting on Thursday. Here we expect a soft ECB surprising the market introducing a 3Y LTRO, which we believe will weigh on the euro”. Next of note will be the advanced figures from the German inflation in May followed by US Markit PMI and the ISM Manufacturing.
EUR/USD levels to watch
At the moment the pair is losing 0.22% at 1.3603 with the immediate support at 1.3599 (low May 30) ahead of 1.3586 (low May 29) and then 1.3585 (low Feb.13). On the upside, a breakout of 1.3645 (200-d MA) would expose 1.3650 (high May 30) and finally 1.3655 (Tenkan Sen).
EUR/USD hit by PMI data
The pair is giving away earlier losses, falling from the 1.3635/30 region after the final manufacturing PMIs from euro zone members disappointed investors in May. Only the French print surpassed forecasts, although came in lower from the previous month. In the opinion of Jens Pedersen, Analyst at Danske Bank, “the market will probably stay relatively calm ahead of the all important ECB meeting on Thursday. Here we expect a soft ECB surprising the market introducing a 3Y LTRO, which we believe will weigh on the euro”. Next of note will be the advanced figures from the German inflation in May followed by US Markit PMI and the ISM Manufacturing.
EUR/USD levels to watch
At the moment the pair is losing 0.22% at 1.3603 with the immediate support at 1.3599 (low May 30) ahead of 1.3586 (low May 29) and then 1.3585 (low Feb.13). On the upside, a breakout of 1.3645 (200-d MA) would expose 1.3650 (high May 30) and finally 1.3655 (Tenkan Sen).