COZfx: Euro trading below the 1.3000 level

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COZforex: For the past trading session, Euro declined 0.71% against the USD and closed at 1.2975. The greenback registered gains following a 2.1% surge in the US factory orders in May. However, the New York City current business conditions index deteriorated sharply in June and the economic optimism index slipped unexpectedly in July.

Separately, the Federal Reserve Bank of New York President, William C. Dudley, indicated that even as the US economy’s underlying fundamentals improve, the central bank shall not begin tightening monetary policy and that the central bank is likely to prolong bond purchases if the economy turns out weaker than Fed forecasts.

Meanwhile, Euro-zone’s Producer Price Index fell 0.3% in May, and the annual PPI slipped 0.1% in May.

In other news, the Troika has reportedly given a three day ultimatum to Greece to show that it can fulfil the conditions in order to receive the next tranche of €8.1 billion of its rescue loans.

Payroll processor ADP said the US private sector added 188,000 jobs in June, more than expectations for an increase of 160,000. Separately, the US Department of Labour said the number of people who filed for unemployment assistance last week dropped by 5,000 to a seasonally adjusted 343,000, compared to expectations for a drop of 3,000 to 345,000.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, EUR/USD is predicted to find support at 1.2932, and a decline through could take it to the next support line of 1.2890. Meanwhile, the pair is predicted to find its first resistance at 1.3047, and a rose through could take it to the next resistance line of 1.3120.

After the release of positive manufacturing PMI data from the European nations last Monday, investors now optimistically eye the services PMI data scheduled to release later today in the Euro-zone. Meanwhile, in the US, investors will be looking to initial jobless claims and ADP employment change data for further insight into the health of the world’s largest economy.

(COZ forex UK)