EUR/USD depressed near 1.1370/60 ahead of ISM

The shared currency stays on the defensive so far on Monday, with EUR/USD now navigating the area of session lows in the 1.1370/60 band.

EUR/USD attention to US data

The pair is intensifying the correction lower from Friday’s fresh multi-month peaks near 1.1450, now testing the lower end of the recent range in the 1.1370/60 band ahead of the release of the relevant US ISM manufacturing for the month of June.

In addition, German yields are deflating from recent highs today, widening the spread vs. US yields and thus collaborating further with the downside. 

Earlier in the session, final readings for June’s manufacturing PMI had no echo on market participants, which remain more focused on the US calendar instead.

Last week spot climbed to levels last seen in October 2016 beyond 1.1400 the figure bolstered by a more aggressive message from the ECB along with the BoE and the BoC amongst the major central banks, motivating at the same time the resumption of market chatter on a potential ECB tapering in the next months.

EUR stays supported by the speculative community so far, with net longs climbing to 2-week tops during the week ended on June 27, as shown by the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is retreating 0.54% at 1.1364 and a break below 1.1290 (low Jun.28) would open the door to 1.1280 (10-day sma) and then 1.1244 (21-day sma). On the other hand, the next up barrier is located at 1.1448 (2017 high Jun.30) seconded by 1.1466 (high Apr.12 2016) and finally 1.1616 (high May 3 2016).