EUR/USD breaks above 1.1000 on US data

FXStreet (Edinburgh) - It’s all about USD weakness today, with EUR/USD now advancing beyond the psychological mark at 1.1000.

EUR/USD stronger as Dollar slumps

The pair is testing January highs in the mid-1.1000s following an increasing selling pressure around the greenback in response to disappointing releases in the US docket.

In fact, the ISM Non-manufacturing has come in at 53.5 during January, missing expectations and dropping from December’s 55.3. The data adds to a lower Services PMI tracked by Markit posted before. On the bright side (theoretically at least), the ADP report showed the US private sector added 205K jobs during last month, bettering initial forecasts, although markets largely ignored the print.

EUR/USD levels to watch

The pair is now advancing 0.95% at 1.1017 facing the next resistance at 1.1054 (200-day sma) followed by 1.1059 (December high) and finally 1.1100 (psychological handle). On the other hand, a break below 1.0777 (post-ECB low Jan.21) would open the door to 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5).

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