The selling interest remains alive around the single currency on Tuesday, dragging the EUR/USD to a test of recent lows around 1.3380.
The euro has reacted adversely after the mixed results from Services PMIs in the euro bloc, with sellers stepping in to fade the recent spike to levels around 1.3440/50. Next of note will be US Factory Orders (0.6% exp.) and the ISM Non manufacturing for the month of July (56.3 exp.). In the view of Camilla Sutton, Chief FX Strategist at Scotiabank, “The combination of ongoing downside pressure on inflation, weak confidence, disappointing PMIs and the negative impact of falling trade with Russia are likely to keep a relatively cautious tone at the ECB and support EUR downside”.
As of writing the pair is losing 0.27% at 1.3385 with the next support at 1.3366 (2014 low Jul.30) followed by 1.3359 (low Nov.12 2013) and then 1.3345 (low Nov.11 2013). On the other hand, a break above 1.3425 (high Aug.25) would target 1.3433 (high Aug.4) en route to 1.3445 (high Aug.1).