FXStreet (Edinburgh) - The single currency is now transiting the 1.3520 area vs. the greenback, with the EUR/USD deflating from previous highs around 1.3550.

EUR/USD focus on PMIs, IFO

The first half of the week will be almost irrelevant data –wise in the euro area, with investors turning their attention to the second half where advanced manufacturing and services PMI prints (Thursday) and the German IFO (Friday) are both due. “In line with expectations, EUR moved below 1.3500. However, the subsequent rebound from the low of 1.3492 suggests limited downside risk for today. The current recovery could extend towards 1.3550 but this is likely part of a 1.3500/1.3550 consolidation range instead of the start of a fresh up-move”, signalled Quek Ser Leang, Market Strategist at UOB Group.

EUR/USD levels to watch

At the moment the pair is up 0.01% at 1.3526 and a break above 1.3540 (high Jul.17) would target 1.3572 (high Jul.16) en route to 1.3595 (30-d MA). On the flip side, the initial support aligns at 1.3512 (low Jul.12) ahead of 1.3503 (low Jun.5) and then 1.3482 (low Feb.6).

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