The now softer tone around the greenback is helping EUR/USD to re-test the critical 1.2000 neighborhood after recording fresh multi-month lows near 1.1980 on Tuesday. What event does the pair now look to? Read on as the 2 May EURUSD Technical Outlook will reveal.
2 May, OctaFX – The decline in spot appears to be taking a breather today after some contention emerged in the 1.1985/80 band yesterday, or fresh 4-month lows. It is worth mentioning that the pair managed to break below the multi-month 1.2155-1.2555 range with some conviction following the sharp rebound in the buck.
EUR/USD looks to data, FOMC
The solid demand for the greenback and robust performance in yields in the US money markets on the USD-side, while poor results in the euro area and a cautious ECB on the EUR-complex have been weighing on the pair as of late, sparking a 4-cent decline from April’s tops beyond 1.24 the figure.
Looking ahead, final manufacturing PMIs are due later in Euroland along with advanced Q1 GDP figures in the euro region. Across the pond, the ADP report is coming up next preceding the FOMC meeting later in the NA session.
2 May EURUSD Technical Outlook
At the moment, the pair is gaining 0.08% at 1.2003 facing the next hurdle at 1.2155 (10-day sma) followed by 1.2210 (high Apr.26) and finally 1.2246 (21-day sma). On the flip side, a break below 1.1982 (low May 1) would target 1.1916 (2018 low Jan.19) en route to 1.1718 (monthly low Dec.12 2017).
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