EUR/USD corrects further below 1.0800 ahead of PMIs, Fed

Having failed to resist above 1.08 handle once again, the EUR/USD pair extends its side-ways movement below the last, as we progress towards the European opening bells.

EUR/USD affected by Trumponomics

Currently, the spot now trades -0.14% at fresh session lows of 1.0781, having posted a day’s high at 1.0805. The main currency pair is confined within a slim range, and now moves slightly away from fresh eight-weeks highs reached yesterday at 1.0814.

The EUR/USD pair remains largely subdued so far this session, as the bulls consolidate previous heavy gains and gather pace for the next push higher, with the Euro area final manufacturing PMI reports and EU economic forecasts on tap later in the European session ahead.

Looking ahead, the major may remain exposed to further corrective declines as markets unwind their Trump policies induced USD shorts ahead of the FOMC decision. While the US datasets may also lift the dollar demand later on Wednesday.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0814 (8-week high). A break beyond the last, doors will open for a test of 1.0850 (psychological levels) and from there to 1.0875 (Dec tops). On the flip side, the immediate support is placed at 1.0764 (daily pivot) below which 1.0740/34 (5 & 10-DMA) and 1.0716 (100-DMA) could be tested.