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EUR/USD is trading above 1.22. The preliminary PMI prints later today (from 07:15 GMT) will set the tone for the EUR-USD’s next leg, Terence Wu, FX Strategist at OCBC Bank reports. Preliminary PMIs for May are projected to continue their gradual advance, especially in the services sector.

EUR/USD probable scenarios

“A firm print, coupled with the reopening optimism across Europe could see the pair breach the 19 May high, and leaving the Jan high of 1.2349 the next multisession target.”  

On the flipside, any disappointment could see first support at 1.2150.”

“Note that the divergence between spot and the short term implied valuations is creeping higher.”