EUR/USD weakens to 1.3770

FXstreet.com (Edinburgh) -The single currency is now losing the grip, dragging the EUR/USD to test intraday lows in the vicinity of 1.3780 after disappointing PMI data from the euro area.

EUR/USD retreats from highs

After hitting fresh 2013 peaks beyond 1.3820, the pair quickly retraced those gains as the more relevant manufacturing PMI prints from core members of the bloc and the euro area as a whole disappointed investors. Ahead in the day, the weekly report on the US labour market, manufacturing PMI gauged by Markit and New Home Sales will be in the spotlight across the Atlantic. “The euro is also deriving support from further evidence of euro-zone economic recovery with the Bank of Spain estimating that the Spanish economy expanded by 0.1% in Q3 for the first time in Q1 2011”, suggested Lee Hardman, Currency Analyst at BTMU.

EUR/USD levels to watch

At the moment the pair is losing 0.02% at 1.3772 with the next support at 1.3741 (low Oct.23) followed by 1.3700 (psychological level) and finally 1.3662 (low Oct.22). On the upside, a break above 1.3824 (2013 high Oct.24) would target 1.3859 (high Nov.11 2011) en route to 1.3871 (high Nov.1 2011).

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