EUR/USD deflates to 1.0730 head of PMIs

FXStreet (Edinburgh) - The single currency is now losing the grip vs. the dollar, sending EUR/USD to test daily lows in the 1.0730 area.

EUR/USD attention to PMIs, US data

The pair has recovered some ground after bottoming out near 1.0700 the figure on Tuesday, although the solid buying interest around the greenback keeps capping the upside for the time being.

Ahead in the session, the final December Services PMIs are due in the euro region, although the more relevant events will come from the USD side, as the ADP report is due later followed by Factory Orders, ISM Non Manufacturing and the FOMC minutes.

EUR/USD levels to consider

At the moment the pair is down 0.17% at 1.0733 and a break below 1.0700 (psychological level) would expose 1.0538 (low Dec.3) and finally 1.0456 (2015 low Mar.16). On the other hand, the next resistance lines up at 1.0842 (55-day sma) followed by 1.0860 (61.8% Fibo of 1.0538-1.1059) and then 1.1040 (200-day sma).

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