- The pair comes under further selling pressure near 1.1660.
- Today’s upside appears once again capped beyond 1.1700.
- US ISM Non-manufacturing next of relevance in the calendar.
After climbing to session tops beyond 1.1700 the figure, EUR/USD met usual selling pressure and it has now returned to the 1.1660 region, or fresh daily lows.
EUR/USD now looks to data
The area above the 1.1700 milestone still appears quite a strong barrier for EUR-bulls so far, as the pair now seems to have entered a consolidation phase with the upper end above 1.1700 and the mid-1.1600s limiting the downside.
The greenback, instead, seems to have resumed the recent upside and is now looking to consolidate above the 94.00 mark following the recent drop in the 93.75/70 band, all despite yields of the key US 10-yaer note are correcting lower from earlier tops in the 2.95% neighbourhood.
In the data space, Retail Sales in the euro area expanded at a monthly 0.1% and 1.7% on a year to April, while the final Services PMI came in at 53.8 for the month of May, below consensus.
In the US docket, Services PMI is next on tap followed by the more relevant ISM Non-manufacturing and JOLTs Job Openings.
EUR/USD levels to watch
At the moment, the pair is losing 0.25% at 1.1669 and a breakdown of 1.1617 (low Jun.1) would target 1.1511 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next resistance aligns at 1.1744 (high Jun.4) seconded by 1.1758 (21-day sma) en route to 1.1830 (high May 22).
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