FXStreet (Mumbai) – The offered tone around USD strengthened after the gauge of private sector activity failed to impress markets, pushing the EUR/USD pair to a high of 1.0913.
Trades around 1.09
The spot trimmed gains to trade around 1.0895-1.09 levels. The Markit US manufacturing PMI missed estimates, but stayed above 50.00, while the ISM PMI bettered estimates but stayed below 50.00.
More importantly, the ISM employment index dropped, which increases the likelihood of a weak NFP on Friday, although we are yet to receive the service sector employment index. Nevertheless, manufacturing PMIs were enough to trigger a minor drop in the USD. The focus now shifts to ECB Draghi’s speech due in an hour.
EUR/USD Technical Levels
The immediate resistance is seen at the daily high of 1.0913. A break higher would expose 1.0940 (61.8% of Mar-Aug rally). On the other hand, a break below the immediate support at 1.0890 (38.2% of 1.1495-1.0517) would open doors for a drop to 1.0843 (50-DMA).
(Market News Provided by FXstreet)