2 Jun 2014
EUR/USD briefly drops below 1.3600
FXStreet (Córdoba) - The EUR/USD briefly dipped below the 1.3600 mark to hit its lowest in 4 days, following the release of disappointing Eurozone and German PMIs.
The EUR/USD hit a low of 1.3593 after data showed the Eurozone and the German manufacturing activity both expanded in May but at slower pace. However, the EUR/USD managed to quickly bounce back above 1.3600 and it is currently trading at the 1.3605 zone, recording a 0.18% loss on the day. Next on tap will be the German CPI, which is expected to rise 1.1% annual pace in May.
Tomorrow, the Eurozone will release the CPI figures, which are expected to show a rise in prices of 0.7% YoY in May. This is well below the ECB goal of 2.0% just 2 days before the central bank policy decision, with consensus pointing for cuts of the 3 main rates. However, with much of this move already priced in, EUR bears might want to take profits if the bank does not surprise.
EUR/USD technical levels
In terms of technical levels, the EUR/USD could find immediate supports at 1.3585 (May 29 low) and 1.3561 (Feb 12 low). On the other hand, resistances are seen at 1.3640 (200-day SMA), 1.3649 (May 30 high) and 1.3668 (May 27 high).
The EUR/USD hit a low of 1.3593 after data showed the Eurozone and the German manufacturing activity both expanded in May but at slower pace. However, the EUR/USD managed to quickly bounce back above 1.3600 and it is currently trading at the 1.3605 zone, recording a 0.18% loss on the day. Next on tap will be the German CPI, which is expected to rise 1.1% annual pace in May.
Tomorrow, the Eurozone will release the CPI figures, which are expected to show a rise in prices of 0.7% YoY in May. This is well below the ECB goal of 2.0% just 2 days before the central bank policy decision, with consensus pointing for cuts of the 3 main rates. However, with much of this move already priced in, EUR bears might want to take profits if the bank does not surprise.
EUR/USD technical levels
In terms of technical levels, the EUR/USD could find immediate supports at 1.3585 (May 29 low) and 1.3561 (Feb 12 low). On the other hand, resistances are seen at 1.3640 (200-day SMA), 1.3649 (May 30 high) and 1.3668 (May 27 high).