EUR/USD fails once again near 1.0685, PMIs, Fed eyed

The EUR/USD pair is seen correcting yesterday’s rally, now accelerating the decline amid resurgent broad USD demand, as the European traders hit their desks and prefer to hold the reserve currency ahead of plenty of risk events in-stored later today.

The US treasury yields continue to trade choppy, although attempt a minor-recovery, which adds to the renewed downside in the major. Meanwhile, the USD index prints daily tops at 100.41, although almost unchanged on the day.

Moreover, flight to safety remains the key theme as we step into Europe, with markets turning cautious ahead of the Trump-XI Summit. Hence, widespread risk-aversion pushes the German yields to monthly lows, weighing down on the common currency.

Attention now turns towards the US private sector ADP jobs report, followed by ISM services PMI and FOMC minutes for fresh impetus on the buck.

EUR/USD Technical Levels   

Valeria Bednarik, Chief Analyst at FXStreet explains, “Technically, the pair remains biased towards the downside, as in the 4 hours chart, the 20 SMA has extended its decline above the current level, now a few pips above the current level, and with the Momentum indicator having turned back south after failing to surpass its mid-line, whilst the RSI indicator continues consolidating near oversold readings. The pair has once again posted a lower low and a lower high daily basis, although it still needs to break below the 1.0620 support to confirm a bearish extension towards 1.0565 the next strong Fibonacci support. Support levels: 1.0620 1.0590 1.0565 Resistance levels: 1.0710 1.0745 1.0780.”