- The pair loses further momentum and drops to 1.1340.
- German flash manufacturing PMI fell below the 50 threshold.
- ECB event next of relevance in the calendar.
The selling bias around the European currency stays well and sound during the morning in the Old Continent, keeping EUR/USD under pressure in the mid-1.1300s for the time being.
EUR/USD offered on poor PMIs, looks to ECB
Spot keeps navigating within the negative territory on Thursday on the back of a pick up in the buying interest around the greenback and less auspicious results from the EMU docket.
In fact, the sentiment around EUR has deteriorated further today after German preliminary manufacturing PMI is seen dropping below the key 50.0 threshold in the first month of the year. In the same line, the gauge for the broader euro area is also expected to drop to 50.5 from 51.4.
What to look for around EUR/USD
The shared currency is expected to keep the sideline theme intact ahead of the ECB meeting due later. Investors’ attention should then orbit around the opinion of the Governing Council on the current slowdown in the region and its (renewed?) views on the risks now facing the euro area. On the broader picture, market participants would start looking at the EU parliamentary elections in May along with the social scenario in France as well as Italian politics.
EUR/USD levels to watch
At the moment, the pair is down 0.20% at 1.1358 facing the next support at 1.1336 (low Jan.22) followed by 1.1323 (200-week SMA) and finally 1.1306 (2019 low Jan.3). On the flip side, a break above 1.1396 (10-day SMA) would target 1.1415 (21-day SMA) en route to 1.1442 (38.2% Fibo of the September-November drop).