“¢ German political jitters continue to weigh on the shared currency.
“¢ Already stronger USD gets an additional boost from upbeat US ISM PMI.
“¢ US ISM manufacturing PMI betters expectations and comes in at 60.2 for June.
The EUR/USD pair kept losing ground through the early North-American session and refresh session lows post-US ISM PMI.
The already stronger greenback got an additional boost from the latest US ISM manufacturing PMI, which surpassed even the most optimistic estimates and came in at 60.2 for June. In fact, the key US Dollar Index was now seen inching back closer to the key 95.00 psychological mark and kept exerting downward pressure on the major.
Meanwhile, the shared currency continues to be weighed down by the latest German political crisis, wherein market participants now seemed skeptic if Chancellor Angela Merkel’s coalition can survive amid escalating row over migrant policy with her conservative allies.
The pair has now moved on the brink of breaking back below the 1.1600 handle, which a follow-through weakness, back towards challenging the key 1.1500 psychological mark, now looking a distinct possibility.
Technical levels to watch
A follow-through downfall is likely to find support near the 1.1555-50 region, below which the pair seems all set to aim towards retesting YTD lows support near the 1.1515-10 zone. On the flip side, the 1.1640 level now seems to act as an immediate hurdle, which if cleared could assist the pair to make a fresh attempt towards reclaiming the 1.1700 handle.
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