EUR/USD: Recovery fizzles near Friday’s high
By FXStreet FXStreet (Mumbai) – The overnight recovery in the EUR/USD pair from multi-month lows lost steam near Friday’s high at 1.0640. The price retreated slightly and now hovers well above the 10-DMA support located at 1.0614.
EUR/USD stuck in tight range
Currently, the EUR/USD pair trades -0.11% lower at 1.0622, having posted fresh session highs at 1.0637 in opening hours. The main currency pair paused its previous pullback and turned lower this session as the greenback jumped back on the bids against its major peers after the recent corrective slide.
On Tuesday, the EUR/USD pair rebounded from multi-month lows reached near 1.0560 region and witnessed an almost 80-pips recovery after the US dollar weakened across the board on the back of technical correction. Adding to the USD weakness, the latest US ISM manufacturing PMI index came in at the lowest since 2009 and entered contraction.
Moreover, markets viewed that further ECB easing this week has been already priced-into the EUR/USD decline seen over the past week and hence, locked-in gains on a short-covering rally.
Meanwhile, markets now await the Euro zone CPI and the US ADP employment report in the day ahead for fresh incentives while still digesting the upbeat EZ PMIs and jobs …read more
Source:: FX Street
