“¢ German political jitters prompt some fresh selling on Monday.
“¢ Resurgent USD demand adds to the downward pressure.
“¢ US ISM manufacturing PMI eyed for fresh impetus.
The EUR/USD pair held on to its weaker tone through the mid-European session and is currently placed at the lower end of its daily trading range, around the 1.1635-30 region.
The pair struggled to build on last week’s goodish rebound from an important support near the 1.1510 region and came under some renewed selling pressure at the start of a new trading week amid fresh German coalition crisis.
German Chancellor Angela Merkel’s conservative ally CSU’s Horst Seehofer offered to quit his ministerial post and threatened to end the coalition in wake of an escalating row of the current immigration agreements made with other EU partner countries.
This coupled with resurgent US Dollar demand, despite sliding US Treasury bond yields, exerted some additional downward pressure and further collaborated to the pair’s rejection slide from the 1.1700 neighborhood.
The pair touched an intraday low level of 1.1626 and seemed rather unaffected by today’s mixed final EZ manufacturing PMI prints. Traders now look forward to the release of US ISM manufacturing PMI in order to grab some short-term opportunities during the early North-American session.
Technical levels to watch
Weakness below the 1.1600 handle is likely to find support near the 1.1580-75 region, below which the pair could fall back towards challenging the key 1.1500 psychological mark. On the flip side, the 1.1685-90 region now seems to have emerged as an immediate hurdle, which if cleared might trigger a short-covering bounce and lift the pair further towards 1.1740-45 supply zone.
Share
