EUR/USD weaker, challenging 1.0600 on PMIs

The shared currency remains on the defensive vs. its American peer on Wednesday, with EUR/USD putting the 1.0600 support to the test in the wake of PMIs readings.

EUR/USD attention to data, FOMC

The pair is following the broad-based lack of direction in the global sentiment, as the inactivity in Japanese markets and the shortened trading week in the US due to Thanksgiving Day tomorrow seem to have drained markets of volatility.

In the meantime, spot is managing quite well to keep the trade above the 1.0600 barrier for the time being, in a context where the demand for the dollar remains firm in response to expectations of a Fed’s move by year-end.

Back to Euroland, preliminary readings for November’s Manufacturing and Services PMIs in Germany and France have come in mixed, although markets paid little to none attention to the releases.

The day will surely get more interesting later with the data releases expected across the pond: Markit’s advanced manufacturing PMI for the current month, Durable Goods Orders, New Home Sales, Initial Claims, November’s final Consumer Sentiment and the FOMC minutes.

EUR/USD levels to watch

The pair is now losing 0.14% at 1.0610 and a break below 1.0567 (2016 low Nov.18) would aim for 1.0538 (low Dec.3 2015) and then 1.0519 (low Apr.13 2015). On the other hand, the initial resistance aligns at 1.0652 (high Nov.21) followed by 1.0763 (high Nov.16) and finally 1.0826 (high Nov.14).