EUR/USD is at potential support zone of 1.0730/1.0710. A break below here could open up further losses, analysts at Société Générale report.High formed last week at 1.0910 is likely to cap
“EUR/USD is challenging the 100-DMA; it is worth noting that this MA had cushioned downside in March.”“The pair is close to potential support of 1.0730/1.0710 representing the 23.6% retracement from last year. An initial bounce is not ruled out however the high formed last week at 1.0910 is likely to cap.”
“Failure to defend 1.0730/1.0710 can extend the decline towards 1.0650 and perhaps even towards March low of 1.0510.”
EUR/USD stays below 1.0800 after US PMI data
EUR/USD continues to trade in negative territory below 1.0800 in the second half of the day on Tuesday. The mixed PMI data from the US failed to trigger a noticeable market reaction but the risk-averse market atmosphere provides a boost to the US Dollar.
GBP/USD hits fresh monthly low below 1.2400
GBP/USD is extending losses below 1.2400, hitting fresh monthly lows after the UK Preliminary business PMI data disappointed in May. BoE Governor Bailey’s cautious comments on the policy outlook puts additional weight on Pound Sterling ahead of key US data.
Gold stays deep in red $1,960 as US yields push higher
Gold price remains under bearish pressure and trades below $1,960 on Tuesday. The benchmark 10-year US Treasury bond yield extends the rally into an eighth straight day and holds comfortably above 3.7%, not allowing XAU/USD to stage a rebound.
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