FXStreet (Córdoba) – US dollar weakened further across the board, with EUR/USD climbing to fresh highs following the release of US manufacturing data which showed the sector unexpectedly contracted in November.
The ISM manufacturing PMI fell to 48.6 versus 50.1 in October, crossing the 50.0 threshold for first time since 2012. On the other hand, the Markit PMI released a few minutes before reported the manufacturing sector expanded at a somewhat faster pace in the same period (52.8 vs 52.6 exp). Separated data showed construction spending rose 1.0% in October, doubling expectations.
EUR/USD stretched to a fresh daily high of 1.0629, but faltered ahead of the 10-day SMA. At time of writing, the pair is trading at 1.0619, still up 0.54% on the day.
EUR/USD was already on recovery mode from fresh 7-month low of 1.0557 scored on Monday as investors await Thursday’s ECB decision and the key US nonfarm payrolls report on Friday..
EUR/USD levels to watch
As for technical levels, on the upside, next resistances are seen at 1.0632/37 (10-day SMA/Nov 27 high), 1.0700 (psychological level), 1.0762 (Nov 19 high) and 1.0829 (Nov 12 high). On the other hand, if EUR/USD breaks below 1.0557 (7-month low Nov 30), next supports are seen at 1.0520 (Apr 13 low), 1.0500 (psychological level) and 1.0462 (2015 low Mar 13).
(Market News Provided by FXstreet)