EUR/USD drops to multi-week lows below 1.17 on dollar demand. Fed’s policymaker struck an optimistic tone on Tuesday, putting a bid under the greenback. Above-forecast Eurozone PMIs are needed to stall EUR/USD’s sell-off. EUR/USD’s downward move is gathering steam, and the bulls need better-than-expected Eurozone PMI reports to arrest the fall in the common currency. The currency pair is currently trading at 1.1679, the lowest level since July 27, representing a 1.34% decline on a week-to-date basis. Investors have offered Euros this week on renewed fears of coronavirus lockdown restrictions across the Eurozone and relatively less dovish comments by Federal Reserve’s policymakers. “Markets were surprised after Fed President Evans said [on Tuesday]the economy has returned to 90% of pre-pandemic levels (because it certainly doesn’t feel that way) and the Fed could raise interest rates before the 2% average inflation target is reached,” BK Asset Management’s Kathy Lien noted in her daily analysis. From a technical analysis standpoint, Tuesday’s close below 1.1770 confirmed a head-and-shoulders bearish reversal pattern and opened the doors for 1.1530 (target as per the measured move method). EUR/USD Price Analysis: Breaks below 1.17, head-and-shoulders breakdown confirmed Focus on PMIs The data due at 07:30 GMT is expected to show the German Manufacturing Purchasing Managers’ Index (PMI) rose slightly to 52.5 in September from 52.2 in August. Eurozone’s gauge is also seen rising to 51.9 from 51.7. “Better than expected PMI scores would suggest that the Eurozone recovery is strengthening and that in turn would help put a floor under the euro,” according to FXstreet’s Senior Analyst Joseph Trevisani. However, if the PMIs miss estimates, markets may begin pricing in additional European Central Bank stimulus, fueling a deeper decline in the shared currency. Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CHF Price Analysis: Bulls battle three-month-old resistance line above 0.9200 FX Street 2 years EUR/USD drops to multi-week lows below 1.17 on dollar demand. Fed's policymaker struck an optimistic tone on Tuesday, putting a bid under the greenback. Above-forecast Eurozone PMIs are needed to stall EUR/USD's sell-off. EUR/USD's downward move is gathering steam, and the bulls need better-than-expected Eurozone PMI reports to arrest the fall in the common currency. The currency pair is currently trading at 1.1679, the lowest level since July 27, representing a 1.34% decline on a week-to-date basis. Investors have offered Euros this week on renewed fears of coronavirus lockdown restrictions across the Eurozone and relatively less dovish comments by Federal Reserve's… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.