EUR/USD: Bulls flex muscles above 1.1200 ahead of Eurozone Services PMI
- EUR/USD renewed three-month highs above 1.1200
- Risk-on mood downs the US dollar, props up the spot.
- Focus on Eurozone/ US Services PMI and G7 call.
EUR/USD is challenging three-month highs above 1.1200, as we progress towards the European opening bells. The US dollar extends its five-day losing streak amid a risk-on rally in global equities, underpinned by the economic recovery hopes.
The demand for the safe-haven greenback is absent, as investors seek higher returns, undeterred by the looming coronavirus risks and escalating US riots situation. The US dollar index prints a new three-month low of 97.39, down 0.28% so far.
The main catalyst behind EUR/USD’s rally remains the dollar dynamics, with the macro updates from both continents offering little impetus to the markets, as the risks trends dominate.
On Wednesday’s agenda, the traders will watch out for the Euro area Final Services PMIs and German jobs data. Meanwhile, in the NA session, the US ISM Non-Manufacturing PMI and Factory Orders data will stand out and offer some fresh cues on the dollar trades.
The G7 conference call due later will also remain in focus, as all eyes remain on Thursday’s European Central Bank (ECB) monetary policy decision for the next direction in the major.
EUR/USD technical levels to watch
The immediate resistance awaits at 1.1243 (daily classic R2), above which 1.1300 remains on sight. On the flip side, the supports are aligned at 1.1161 (daily pivot point) and 1.1138 (Ju5-DMA).
EUR/USD additional levels