EUR/USD on the defensive, challenges 1.1600
- The pair now comes under pressure and threatens the 1.1600 handle.
- The greenback looks to consolidate business above 95.00.
- US ISM manufacturing will be the salient event later today.
Some selling pressure emerged around EUR/USD following the Asian session on Tuesday, relegating it to the boundaries of the 1.1600 handle.
EUR/USD looks to USD, data
Spot is reverting yesterday’s gains while keep navigating the lower bound of the recent range near 1.1600 the figure, all following the moderate drop seen last Friday.
Concerns on the US-China trade front continue to weigh on investors’ sentiment along with unabated jitters stemming from the EM FX space, particularly after the recent acceleration in the Turkish inflation.
Looking ahead, and with the activity in US markets slowly returning to normalcy, the ISM manufacturing for the month of August will be the salient event later in the NA session, seconded by the IBD/TIPP index and the speech by Chicago Fed C.Evans.
EUR/USD levels to watch
At the moment, the pair is losing 0.14% at 1.1604 and a break below 1.1585 (low Aug.31) would target 1.1545 (21-day SMA) en route to 1.1508 (low May 29). On the flip side, the next up barrier aligns at 1.1633 (10-day SMA) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).