EUR/USD turns negative near 1.1020 ahead of PMIs

The shared currency is following the rest of its G10 peers today, prompting EUR/USD to trade in a tight range amidst a generalized lack of direction.

EUR/USD attention to PMIs, ECB

Spot keeps the low-1.10s for the time being, coming down from yesterday’s ephemeral spike to the 1.1060 area at some point during Draghi’s press conference. Hopes of a potential squeeze higher in the pair has evaporated on Thursday, as the ECB failed to lend extra support to EUR, keeping the cautious tone albeit removing some concerns from the recent ‘Brexit’ vote and its implications for the euro region.

Next on tap in Euroland will be the flash Manufacturing/Services PMIs for the current month ahead of the ECB’s Survey of Professional Forecasters (SPF) and the speech by board member B.Coeure in China.

Across the pond, Markit will publish its July’s advance print for the manufacturing PMI.

EUR/USD levels to watch

The pair is now losing 0.05% at 1.1021 facing the immediate support at 1.0979 (low Jul.20) followed by 1.0913 (post-Brexit low Jun.24) and then 1.0820 (low Mar.10). On the other hand, a breakout of 1.1080 (200-day sma) would target 1.1166 (high Jul.14) en route to 1.1239 (base of the 6-month rising channel).