EUR/USD eyeing a break below 1.0600 ahead of US data, Fed

The selling pressure behind the EUR/USD pair remains intact in the mid-European session, with the bears now eyeing a break below 1.06 handle.

EUR/USD unimpressed by mixed PMIs                                                            

Currently, EUR/USD trades -0.18% lower at 1.0606, flirting with daily lows struck at 1.0600 in the last hour. The main currency pair is on the back foot for the second straight session as the USD bulls are back in command in wake of divergent monetary policy outlook, especially with a Dec Fed rate hike almost a done deal now.

Moreover, the shared currency failed to benefit from mixed manufacturing PMI reports from Germany and Eurozone, as all eyes now remain on the US durable goods data and FOMC minutes lined up for release later in the NA session. Markets are expected a solid rebound in the durable goods number, which will further fuel losses in EUR/USD.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels/ daily high). A break beyond the last, doors will open for a test of 1.0665 (10-DMA) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0600 (round number/ daily low) below which 1.0567 (multi-month low) and 1.0556 (Nov 2015 low) could be tested.

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