EUR/USD recedes from 2017 tops at 1.1685, EZ PMIs eyed

The bulls face exhaustion as we head into early Europe, prompting a minor-retreat in the EUR/USD pair from fresh two-year highs posted at 1.1685 during early Asia.

EUR/USD: Aug 2015 highs at 1.1715 still on sight

The spot is seen defending minor-bids in the early European trading, as markets await the Eurozone and German manufacturing and services PMI releases for the next move.

The Eurozone and German manufacturing sector activity is expected show a slowdown in July, which could provide the EUR traders an excuse to take some profits off the table, after recent solid gains backed by hawkish ECB and renewed US political uncertainty.

Also, the bulls turn slightly nervousness ahead of the FOMC policy decision due later in the week ahead, which could throw fresh light on the future course of the Fed’s monetary policy stance, in turn setting up the next direction in the buck.

EUR/USD Technical Set-up  

According to Omkar Godbole, Analyst at FXStreet, “A break above 1.1685 (23.6% Fib R of 2008 high - 2017 low) would open doors for 1.1713 (Aug 2015 high). Two consecutive daily close above the same could yield 1.1890 (monthly 50-MA) levels. On the downside, breach of support at 1.1660 (session low) would open up downside towards 1.1607 (5-DMA) and 1.1576 (1-hour 100-MA).”