- The pair finds decent support in the 1.1780/70 band so far.
- The greenback recedes from earlier tops, back around 93.45/40.
- US Philly fed index came in above estimates at 34.4 for the current month.
After bottoming out in the 1.1780/70 band in early trade, EUR/USD has managed to regain some attraction and is now flirting with the 1.1800 neighbourhood.
EUR/USD higher on US data
The pair remains entrenched into the negative territory so far this week and is now gyrating around the 1.1800 handle following the US data releases.
The greenback eases from daily highs despite the key Philly Fed manufacturing index surprised to the upside for the month of May, coming in at 34.4 vs. 21.0 expected and up from April’s 23.2. In addition, weekly Initial Claims rose to 222K, missing forecasts.
All in all, USD-dynamics continue to dictate the sentiment around the pair almost exclusively, leaving Italian politics to a secondary role. Furthermore, spot keeps struggling to sustain any bullish attempts near/above the 1.1900 handle and seems to have shifted its focus back to December 2017 lows in the 1.1720 region.
EUR/USD levels to watch
At the moment, the pair is losing 0.02% at 1.1807 and a breach of 1.1764 (2018 low May 16) would target 1.1718 (monthly low Dec.12 2017) en route to 1.1553 (monthly low Nov. 7 2017). On the upside, the next hurdle emerges at 1.1886 (10-day sma) seconded by 1.1996 (high May 14) and finally 1.2021 (200-day sma).
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