Forex: EUR/USD around 1.3040, ahead of US data

FXstreet.com (Barcelona) - The bloc currency is trading in the proximities of 1.3040 on Monday, waiting for the manufacturing PMI and ISM indexes due later in the US economy.
The demand for risk-associated assets remain strong, propped up by the recent improvements in the Chinese and EMU manufacturing sector.

According to K.Kirkegaard, Senior Analyst at Danske Bank, "Our biggest concern at the moment, however, is that the market is becoming over-confident in a US fiscal solution. From that perspective, the move higher in EURUSD may appear in line with fundamentals but also perhaps slightly premature".

The cross is now advancing 0.41% at 1.3037 with the next resistance at 1.3049 (high Dec.3) ahead of 1.3075 (high Oct.23) and then 1.3084 (high Oct.22).
On the downside, support levels lie at 1.2969 (low Nov.30) followed by 1.2939 (low Nov.29) and 1.2935 (MA10d).