EUR/USD finds support near 1.1730 ahead of ISM

The daily decline in EUR/USD appears to have found some support in the area of 1.1730 ahead of the key US ISM manufacturing.

EUR/USD in 2-day lows

Spot came under renewed selling pressure at the beginning of the week, initially following the results from the independence referendum in Catalonia (Spain), while the continuation of the buying interest around the buck weighed down the pair later.

The down move in EUR/USD has been tracking the solid performance of US 10-year yields, which clinched fresh tops above 2.37% earlier in the session and helped the US Dollar Index (DXY) to advance further north of the 93.00 handle.

Further news from EUR cited ECB’s board member P.Praet noting the lack of enough progress regarding inflation in the region.

In the data space, final prints of the manufacturing PMIs in the euro bloc passed unnoticed among traders, while the focus of attention remains on US releases: September’s ISM manufacturing, Markit’s manufacturing PMI and the speech by Dallas Fed R.Kaplan (voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is losing 0.53% at 1.1755 and a breakdown of 1.1717 (low Sep.27) would target 1.1662 (low Aug.17) en route to 1.1572 (100-day sma). On the upside, the initial up barriers aligns at 1.1833 (high Sep.29) followed by 1.1853 (10-day sma) and finally 1.1902 (21-day sma).