- EUR/USD recovery from 1.0725 fails to confirm above 1.1000.
- The euro appreciates for the third consecutive day with the dollar weakening after US ISM data.
- FX analysts at TD Securities see 1.1000 as a temporary top.
The euro has pushed higher against the USD on Friday, rallying for the third consecutive day in spite of the risk-off market sentiment. The EUR/USD has appreciated in five of the last six days, extending its recovery from April lows at 1.0725 to reach four-week highs at 1.1020 before easing back below 1.1000.
The euro favoured by dollar weakness after US ISM data
The euro has pushed higher during the US session, with the US dollar losing ground on the back of weaker than expected US manufacturing data. The US ISM Manufacturing PMI has dropped to the lowest level in 11 years, increasing concerns after the sharp decline in consumer spending and the increment of unemployment seen on Thursday.
With an empty Eurozone Calendar, with the major European markets closed for Labor Day, the EUR/USD has remained steady during the European session.
EUR/USD recovery might be coming to an end – TD Securities
After the 2% rally witnessed this week, the FX Analysis team at TD Securities see the euro ripe for another downtrend: “The pop higher has not yet seriously threatened to break above key resistance around 1.10. In line with this, we think the latest move higher represents a good entry point to initiate EURUSD shorts.”
EUR/USD key levels to watch