EUR/USD back to 1.3550

FXstreet.com (Edinburgh) - The shared currency is now back to the 1.3550/45 region on Tuesday, with the EUR/USD correcting lower after hitting a 2-day high in the vicinity of 1.3570.

EUR/USD still below the MA100d at 1.3570

The EUR’s direction remains unclear so far, with spot looking for more solid catalysts ahead in the week, as flash manufacturing/services PMI prints in the bloc are due on Thursday. According to Camilla Sutton, Chief Strategist at Scotiabank, the short-term technicals remain on the bear side, adding “all studies suggest building selling pressure and spot’s close below the 100-day MA (1.3572) and inability to break back above all suggest EUR is vulnerable to further downside pressure. For near term traders we favour short positions”.

EUR/USD relevant levels

As of writing, the pair is losing 0.10% at 1.3550 with the next support at 1.3508 (2014 low Jan.20) would clear the way to 1.3490 (low Nov.25) and finally 1.3463 (low Nov.22). On the flip side, a break above 1.3563 (high Jan.21) would expose 1.3567 (high Jan.20) and then 1.3600 (psychological level).

USD/JPY reverses daily gains

The USD/JPY came under pressure during the New York session and completely retraced intraday gains, falling all the way back to the 104.00 area.
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