EUR/USD retrace back to 1.1150 after strong US PMI data

As the US trading session got underway, the EUR/USD pair surged to weekly high level of 1.1170 before retracing to currently trade back around mid-1.1100s after the release of US ISM manufacturing PMI.

Earlier during European session, the pair attracted fresh bids following the release of slightly better-than initially estimated composite Euro-zone manufacturing PMI print for June. The pair gained further traction on possibilities of stop-loss being triggered around previous weekly high near 1.1150-55 region.

The pair, however, ran into fresh supply after the US ISM manufacturing data surpassed consensus estimates of 51.3 and came-in at 53.2 for the month of June. 

Technical levels to watch

Rejection from higher level and a subsequent drop back below 1.1125-20 support now seems to attract fresh offers, forcing the pair to break through 1.1100 handle and head towards retesting 1.1070-65 support. A follow through selling below 1.1070-65 support now seems to pave way for a decisive break below 1.1000 psychological mark support and head towards retesting Brexit-led swing lows support near 1.0930-20 region, marking a trend-line support extending from Jan. through March lows.

Meanwhile on the upside, session high level of 1.1170 now seems to act as immediate resistance. Momentum back above session high level is likely to boost the pair immediately towards 1.1200 handle, which if conquered might negate any further near-term bearish expectations for the pair.