EUR/USD testing lows near 1.0940

EUR/USD testing lows near 1.0940
FXStreet (Mumbai) – The shared currency extends its downside momentum versus the US dollar in the European morning, pushing EUR/USD to session lows near 1.0930 levels. The major lost its previous strength and came under fresh selling pressure as the euro was dumped as preliminary European PMI readings highlighted ongoing weakness in the euro zone.

EUR/USD eyes 1.09 handle

The EUR/USD pair trades -0.36% lower at 1.0936, inching towards 1.0900 levels. The offered tone around the EUR/USD pair has increased as the euro is relentlessly sold-off across the board as traders seems to have locked-in gains after Thursday’s rally beyond 1.10 barrier.

Moreover, disappointing flash manufacturing PMIs across the Euro zone also accentuated the drop in the EUR/USD pair. The latest flash manufacturing PMI for the euro zone came in at 52.2 points in July, compared to 52.5 in June. While July’s preliminary PMI for Germany’s manufacturing sector fell to 51.5, down from June’s final reading of 51.9 points.

Looking ahead, markets now await US new home sales and manufacturing PMI report due later in the US session for further direction on the pair.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.0996 (Today’s High) levels, above which gains could be extended to 1.1019 (July 23 High) levels. On the flip side, support is seen at 1.0920 (July 23 Low) below which it could extend losses to 1.0869 (July 22 Low) levels.
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EUR/USD testing lows near 1.0940
Source: FXStreet