EUR/USD ignored PMIs, focused geopolitics and rushed above 1.3150

By FXstreet.com | September 03, 2014 AAA

FXStreet (Moscow) - EUR/USD moved up in tiny steps despite worse than expected French and Italy PMI data, the German disappointment stopped the recovery at first, but only for a couple of minutes.

PMIs are out, but Russia is on tap

The pair had a desire to recover part of the losses when the European markets opened, thus, the weaker than expected reading from peripheral economies were ignored by the euro bulls. The German Service PMI disappointed as well coming at 54.9 vs 56.4 expected, and raising fears that the euro zone engine is not doing well. The data initially pressured the single currency sending it to 1.3126 low, but the bulls stepped in, and supported the pair comeback above 1.3150. The possible reason of the euro strength was the report of permanent agreement between Russia and Ukraine.

What are today’s key EUR/USD levels?

The pair reached 1.3155 high by the moment, and is trading at 1.3150 now. Today's central pivot point can be found at 1.3130, with initial support below at 1.3104, followed by 1.3064, and 1.3007. The nearest resistance may be located at 1.3204, once 1.3150 is broken.

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