- Euro recovery fades and is under pressure again.
- EUR / USD falls for the second day in a row.
- Eurozone PMI shows positive revisions and a rebound in February.
The EUR / USD is falling for the second day in a row. The recovery in the first hours of the week after the crash on Friday could not lead to the price above 1.2100 and the pair resumed its bearish routes. It reached a new low since mid-February at 1.2028 and it is trading at 1.2040 / 45.
The The EUR / SUD’s pullback occurred as the dollar rose in the market, still moderate compared to Friday’s rally, and at the same time some weakness of the euro that also marked minimum against the pound. The other European currency showing weakness is the Swiss franc.
Traders’ attention continues to keep an eye on the bond market, which looks more stable at this time. The rapid rise in bond yields from developed countries raised concerns among investors and played in the dollar’s favor.
On the data side, the final reading of the European PMIs was released, most of which showed upward revisions from the preliminary data. The Eurozone Markit PMI manufacturing index for February climbed to 57.9, from 57.7 previously.
Later on Monday, inflation figures of Germany February (preliminaries) and then in EE.UU. the final report of the Markit Manufacturing PMI and the Manufacturing ISM for February. Officials from the Federal Reserve and the European Central Bank will also speak, including President Lagarde.
Technical overview
EUR / USD continues to skew negative after Friday’s slide, after losing support at 1.2090 and the 20-day moving average. The next strong support looms around 1.2010 and below it then appears the February low at 1.1945 / 50. A return above 1.2100 would ease the downward pressure. While to reactivate the bias in favor of the euro, the pair needs to rise and confirm above 1.2180 / 1.2200.
Technical levels
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