EUR/USD faces stiff resistance at 1.0675, US ISM eyed

After having bottomed out at 1.0659 level last hours, the EUR/USD pair struggles to take on the recovery above 1.0675 levels, leaving the rate confined within a tight range, as investors await the US ISM manufacturing PMI for next move in the greenback against its main rivals.

The recovery attempts in EUR/USD falters as markets weigh mixed Eurozone economic releases, with the manufacturing PMI reports coming in upbeat, while the PPI data missed estimates. The bloc’s unemployment rate steadied at 9.5% in Feb.

Moreover, a pick-up in buying interest around the 2-year treasury yields, which mimics the Fed rate hike expectations, boosts the US dollar at the expense of the EUR. Focus now shifts towards the US dataflow, including the ISM and Markit manufacturing PMI reports, alongside the speech due to be delivered by the FOMC member Dudley later in the NA session.

EUR/USD Technical Levels   

Karen Jones, Analyst at Commerzbank explains, “EUR/USD’s near term outlook is negative: The cross last week failed at its 200 day ma and sold off to it’s the 55 day ma at 1.0675, which is being eroded currently. Rebounds from here are likely to be pretty tepid and we look for losses to the base of the short term channel at 1.0580. Intraday rallies are indicated to now remain capped by 1.0730.”