FXStreet (Mumbai) – The offered tone on the EUR continues to strengthen in early Europe, pushing the EUR/USD pair to down to its 100-DMA located at 1.1141 levels.
Deflation weighs over the EUR
The common currency is a victim of the heightened expectations that the European Central Bank may have to do more in order to combat deflationary forces. The Eurozone preliminary CPI reading released on Wednesday showed the 17-nation currency bloc fell back into deflation.
Meanwhile, the stability in the equity markets also added to the bearish pressure on the EUR. The immediate focus is now on the final manufacturing PMI reports due for release later today. In the US session, the ISM manufacturing report could hog the limelight.
EUR/USD Technical Levels
At 1.1145, the immediate support is seen at 1.1141 (100-DMA), under which the pair could drop to 1.11 levels. On the other side, resistance is seen at 1.1171 (200-DMA) and 1.12 levels.
(Market News Provided by FXstreet)