EUR/USD flirting with 1.1350 on US data

The common currency met extra buying pressure following US releases, sending EUR/USD to print fresh lows in the mid-1.1300s.

EUR/USD up 2 cents since Payrolls

Spot has picked up further steam after US ISM Non-manufacturing has missed expectations during May, coming in at 52.9 vs. forecasts at 55.5 and down from April’s 55.7, adding to the already sour sentiment around USD.

Further results saw Factory Orders expanding at a monthly pace of 1.9% and Markit’s Services PMI at 51.3, both prints surpassing estimates albeit having a marginal impact, if any at all.

Expectations of a June rate hike should be off the table by now, while a rate hike in July remains dubious to say the least, all prompting USD-bears to step in big time and send the pair more than 2 cents up since today’s lows in the 1.1140 area just minutes before Payrolls.

EUR/USD levels to watch

The pair is now up 1.62% at 1.1334 and a break above1.1350 (high May 13) would target 1.1466 (high Apr.12) en route to 1.1615 (2016 high May 3). On the other hand, the immediate support lines up at 1.1097 (200-day sma) ahead of 1.1055 (low Mar.16) and then 1.0820 (low Mar.10).