EUR/USD eases from highs, around 1.1820

Another day, another drop of USD. Broad-based weakness hitting the greenback has allowed EUR/USD to clinch fresh highs beyond 1.1800 the figure late on Monday, levels last traded in January 2015.

EUR/USD focus on US data

The generalized selling bias around the greenback plus rising speculations on some sort of ‘tapering’ by the ECB at some point in the near/medium term keeps fuelling the upside in spot, which reached levels last seen in January 2015 beyond the 1.18 handle.

Another confusing episode at the White House saw Trump’s freshly appointed chief of staff J.Kelly sacking A.Scaramucci after 10 days of being appointed as Communications Director. The news sparked yet another sell off in the buck, dragging the US Dollar Index (DXY) to fresh lows near 92.60.

Looking ahead, EMU’s final manufacturing PMI for the month of July is due in Euroland along with advanced Q2 GDP figures. Across the pond, the ISM manufacturing will grab all the attention seconded by the manufacturing PMI and personal income/spending.

EUR/USD levels to watch

At the moment, the pair is losing 0.18% at 1.1820 facing the next support at 1.1735 (38.2% Fibo of the 2014-2017 drop) followed by 1.1691 (10-day sma) and finally 1.1611 (high Jul.26). On the other hand, a breakout of 1.1845 (2017 high Jul.31) would target 1.2040 (2012 low Jul.24) and then 1.2166 (50% Fibo of the 2014-2017 drop).