- EUR/USD bulls come up for air but stay below key resistance.
- Bears eye a lower high for prospects of a break below 1.0840s.
EUR/USD has ranged between 1.0870 and 1.0331 on Monday as the markets soaked up the dreary final euro zone PMI manufacturing index and the US Manufacturing PMI dropped to 46.0 from 46.9 in May, the lowest reading since May 2020. The US ISM survey was consistent with an economy in recession, suggesting US inflation is coming under control, negative for the Greenback.
The following illustrates EUR/USD attempting to come up for air on the 4-hour chart:
EUR/USD H4 chart
The potential of a lower high, however, doe snot bode well for the bulls and the weak lows could be targeted again in the coming days. A break of the 1.0840s opens risk to a run to test the 1.0635s on the downside at the swing lows.
A break of the 1.0970s, however, opens the risk of a run to test 1.1000 in the days ahead.
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