EUR/USD eases off highs, back near 1.1230

After clinching fresh multi-month tops near 1.1270, EUR/USD has now deflated to the area of 1.1235/30.

EUR/USD bid on data

The pair met sellers around daily highs near 1.1270, surrendering gains and slipping back to the negative territory in the 1.1230 area.

In addition, auspicious results from advanced manufacturing/services PMIs in Euroland in combination with solid readings from the German IFO Survey have lent some initial support to EUR.

On the USD-side and in terms of the US Dollar Index (DXY), the buck is looking to grab some buying interest around 96.80/90 ahead of today’s releases in the US calendar, while a moderate rebound in US yields add to the recovery.

That said, Markit’s advanced Manufacturing PMI for the current month is due seconded by New Home Sales and the speech by Minneapolis Fed N.Kashkari (voter, dovish).

EUR/USD levels to watch

At the moment, the pair is retreating 0.05% at 1.1231 facing the next support at 1.1222 (low May 23) followed by 1.1073 (76.4% Fibo of 1.1300-1.0339) and finally 1.0992 (20-day sma). On the flip side, a breakout of 1.1267 (2017 high May 23) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016).