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Forex pairs in this Article » EUR/USD (Edinburgh) - The euro continues to be under selling pressure on Tuesday, pushing the EUR/USD to test fresh weekly troughs below 1.3520.

EUR/USD threatening 1.3500?

The pair could challenge the 1.3500 key support should the selling interest persists in the upcoming sessions, at least until the advanced manufacturing/services PMI results from the euro area are published in the second half of the week. Consensus expects PMIs to come in in a better shape, giving extra oxygen to the EUR. In light of the recent ZEW results, Analyst Carsten Brzeski at ING commented, “In our view, there are sufficient arguments in favour of an acceleration of economic growth rather than in favour of a drop in soft indicators. Today’s ZEW readings fit perfectly into this picture. With a solid labour market, higher real wages, the gradual investment pick-up, filled order books and low inventories the German economy seems to be in the starting blocks for a growth acceleration this year”.

EUR/USD support/resistance levels

At the moment the pair is down 0.32% at 1.3521 and a breach of 1.3508 (2014 low Jan.20) would clear the way to 1.3490 (low Nov.25) and finally 1.3463 (low Nov.22). On the flip side, the initial resistance lines up at 1.3563 (high Jan.21) ahead of 1.3567 (high Jan.20) and then 1.3600 (psychological level).
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