EUR/USD flirting with daily lows near 1.1380

The single currency is now losing part of its shine, forcing EUR/USD to leave the area of recent tops and retreat towards the 1.1380 region, or session lows.

EUR/USD now looks to US data

The demand for the greenback has been gathering extra pace as of late backed by the better tone from US yields, all collaborating with the ongoing correction lower in spot.

Spot climbed to levels last seen in October 2016 beyond 1.1400 the figure bolstered by a more aggressive message from the ECB along with the BoE and the BoC amongst the major central banks. German yields rallied during the past week as well, widening the spread vs. their US peers and at the same time adding extra support to the pair’s up move.

EUR stays supported by the speculative community so far, with net longs climbing to 2-week tops during the week ended on June 27, as shown by the latest CFTC report.

Data wise today, final prints of manufacturing PMIs in the region passed unnoticed among traders, while the bulk of the attention should be on the release of the ISM Manufacturing for the month of June and the speech by St. Louis Fed J.Bullard (2019 voter, centrist).

EUR/USD levels to watch

At the moment, the pair is retreating 0.39% at 1.1381 and a break below 1.1290 (low Jun.28) would open the door to 1.1280 (10-day sma) and then 1.1244 (21-day sma). On the other hand, the next up barrier is located at 1.1448 (2017 high Jun.30) seconded by 1.1466 (high Apr.12 2016) and finally 1.1616 (high May 3 2016).