FXStreet (Edinburgh) - The current EUR decline seems to have found decent bids in the 1.3655/50 band, or session lows, with the EUR/USD now looking to regain levels above 1.3660.
EUR/USD weaker post-EMU data
The single currency lost the grip after EMU’s GDP figures left no room for surprises during the first quarter, expanding 0.2% inter-quarter and 0.9% on a yearly basis. Further data in Euroland showed Producer Prices contracting 0.1% MoM in May and 1.0% over the last twelve months. Next of significance in the data front will be US ADP report ahead of Yellen’s speech. “Even though the ECB has stepped up its dovish rhetoric in the past couple of months, its ability to engineer a weaker exchange rate has been limited by an absence of USD bulls. We expect EUR/USD to move no lower than the 1.35 area this year”, assessed analysts at Rabobank.
EUR/USD levels to watch
The pair is now losing 0.11% at 1.3662 and a breakdown of 1.3641 (low Jun.30) would open the door to 1.3610 (low Jun.27) ahead of 1.3606 (21-d MA). On the flip side, the initial hurdle aligns at 1.3683 9high Jul.2) followed by 1.3701 (high Jul.1) and finally 1.3723 (high May 21).