EUR/USD struggles to recover above 1.0550 on data

The EUR/USD pair moves-off five-day lows and struggles to extend the recovery above the mid-point of 1.05 handle, in response to mixed Euro area final manufacturing PMI reports. While better-than expected German employment data had virtually no impact on the common currency.

The major fell sharply to daily lows on the European open, as the greenback caught a fresh bid-wave against its main peers, with the European traders reacting to Trump’s pro-growth comments made during his address before the Congress.

With the Eurozone PMIs behind, all eyes now remain on the German Prelim CPI data and US ISM manufacturing PMI report due later in the session ahead.

EUR/USD Technical Levels

Dukascopy Team noted, “The common European currency opened Wednesday's trading against the US Dollar near the 1.0575 level. However, during the first hours of the day's trading the rate moved lower, and passed the closest support level before a large range without any level of significance.”

Due to that fact the currency exchange rate positioned itself for a major fall, as the closest support was at the 1.0491 level, where the weekly S1 located at. It is likely that the rate will fall to this support soon, and there it will be stopped for at least a while, as the lower Bollinger band is closing in to support the weekly S1,” the Team added.

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