EUR/USD slides after hitting fresh highs post US ISM Manufacturing PMI

Following the release of US economic statistics, the EUR/USD increased even further, printing a new daily high at 1.0916. The price then dropped to 1.0885. Due to risk appetite and declining yields, the US dollar is under pressure.

The US Dollar Index is dropping 0.50% and is poised to challenge the lows from last week, which were located near 102.00. The 10-year US Treasury yield fell to 3.41%, the lowest level in a week. With the publication of the US ISM Manufacturing survey, the downward gathered momentum. At the time of writing, the EUR/USD pair is trading at 1.0881.

According to data, the US manufacturing sector’s economic activity has been declining. The ISM Manufacturing PMI dropped from 47.7 in February to 46.3 in March, which was below the market consensus of 47.5. Prior to the release of the ADP and NFP, the Employment Index decreased from 49.1 to 46.9. According to a different study, construction spending fell 0.1% in February.

Continental European Bank A half-point increase, according to Robert Holzmann, is still planned for May. According to him, it the central bank slows down rate hikes to 25 bps it would be hard to go back.

The crucial resistance level of 1.0925/30 was in sight for the EUR/USD. The upside throughout the previous two weeks was capped by that zone. The picture for the Euro would be improved by a breakout higher. If the attempt fails, a bearish correction may be possible. Support levels might be located at 1.0855 and 1.0815.