The EUR/USD’s minor-recovery from 1.0860 region lost legs just below few pips below 100-DMA following the release of sluggish manufacturing sector reports from the Eurozone and Germany.
EUR/USD treads water amid risk-on and poor data
Currently, EUR/USD trades almost unchanged at 1.0877, having posted day’s low at 1.0859 and day’s high at 1.0894. The main currency pair failed once again near 100-DMA barrier and now trades directionless as the economic dataflow failed to provide the much needed impetus to the EUR bulls.
Eurozone’s final PMI dipped to 51.2 in Feb, down from the 52.3 seen in January, while Germany’s manufacturing gauge cooled-off to a 15-month low, coming in at 50.5 Feb, versus the previous month’s 52.3. While the German unemployment rate hovered near record lows in Feb.
Further, the upside also lacks momentum on the back of a risk-on rally in the European stocks. With the PMIs out of the way, focus now remains on the US ISM report due later in the NY session.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.0897/1.0900 (100-DMA/ round number). A break beyond the last, doors will open for a test of 1.0930/45 (5-DMA/ daily R1). On the flip side, the immediate support is placed at 1.0859 (Daily low/ Feb 29 Low) below which at 1.0812/09 (Feb 1 & Jan 29 Low) could be tested.
(Market News Provided by FXstreet)
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