- The pair gained downside pressure in the wake of softer PMIs.
- Spot drops to fresh 6-month lows in the 1.1700 neighbourhood.
- Germany, EMU advanced PMI missed consensus for the month of May.
The selling pressure is picking up pace around the European currency on Wednesday and is now dragging EUR/USD to test fresh 6-month lows in the 1.1700 neighbourhood.
EUR/USD weaker on PMIs, supported near 1.1700
Spot tumbled and tested the 1.1700 milestone after advanced manufacturing PMIs in Germany and the euro area came in on the softer side for the current month. Furthermore, the German PMI dropped to 15-month low at 56.8 and the EMU reading came in at 55.5.
Adding to the pair’s downside, the US Dollar Index climbed to fresh tops in the boundaries of the key 94.00 mark, trading at shouting distance from 2018 tops around 94.06 recorded on Monday.
Looking ahead, the pair should be in centre stage in light of the publication of the FOMC minutes later in the European evening and the speech by Fed’s J.Powell scheduled for Friday.
EUR/USD levels to watch
At the moment, the pair is losing 0.52% at 1.1719 and a breakdown of 1.1699 (2018 low May 23) would target 1.1668 (low Oct.8 2017) en route to 1.1659 (monthly low Oct. 27 2017). On the flip side, the next resistance aligns at 1.1829 (high May 22) seconded by 1.1835 (10-day sma) and finally 1.1921 (21-day sma).
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