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  • The pair is under pressure on Tuesday and tests daily lows near 1.1670.
  • The greenback is extending the recovery after bottoming out near 94.20.
  • EMU’s preliminary PMIs next on tap in the docket.

The selling pressure is now picking up pace around the European currency and is dragging EUR/USD to test the area of daily lows in the 1.1675/70 band.

EUR/USD looks to PMIs

The pair is extending the weekly leg lower after reaching fresh tops beyond 1.1700 the figure in past sessions, all amidst a better tone in the greenback and unabated effervescence around the US-China trade dispute.

On the USD-side, the US Dollar Index managed to rebound from recent tops in the 94.20 region along with a strong recovery in yields of the US 10-year note to levels above the 2.95% level.

In the meantime, the pair is poised to extend the sideline theme in the very near term ahead of the ECB meeting on Thursday, where consensus among investors has ruled out any surprises while speculations continue to place the first rate hike by the central bank in Q3 2019.

Looking ahead, advanced PMIs in the euro zone are coming up next, while Markit’s manufacturing and services PMIs are also expected across the pond.

EUR/USD levels to watch

At the moment, the pair is losing 0.19% at 1.1670 and a breakdown of 1.1575 (low Jul.19) would open the door to 1.1527 (low Jun.28) and then 1.1508 (2018 low May 30). On the flip side, the next hurdle at 1.1749 (high Jul.23) followed by 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).