EUR/USD turns negative to test 1.0500, EZ PMIs eyed

The EUR/USD pair failed to hold the upbeat tone witnessed in the first Asian session of 2017, and now turns lower towards 1.05 handle, as we step into early European trading.

Currently, the spot trades -0.07% lower at fresh session lows of 1.0511, with the bears eyeing for a break below 1.05 handle. Trading is expected to remain thin in the day ahead amid low volumes, as most major world markets are closed in observance of New Year's Day.

Although the Eurozone final manufacturing PMI reports due to be published in the European session will be closely eyed for fresh incentives ahead of the all-important US NFP data due later this week.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0532 (2017 high/ daily R1). A break beyond the last, doors will open for a test of 1.0550 (psychological levels) and from there to 1.0600 (zero figure). On the flip side, the immediate support is placed at 1.0500 (round number) below which 1.0473 (10-DMA) and 1.0450 (key support) could be tested.