The single currency of the European Union fell during the Asian session to see its lowest since May 15, 2017 against the US dollar on the eve of developments and economic data expected on Tuesday by the economies of the euro zone and the US economy, the world's largest economy.
At 05:10 am GMT, EUR / USD fell 0.30% to 1.0937 levels from the opening at 1.0970, after the pair reached its lowest level in more than two years at 1.0931, while the highest in session trading at 1.0972.
Markets are looking to reveal the labor market data for Spain, the fourth largest economy in the euro zone with the release of the Unemployment Change, which may reflect an increase of 35.8K versus a decline of 4.3K in July, before we see the Eurozone economies as a whole. The PPI may show a 0.3% growth versus a 0.6% contraction in June.
On the other hand, investors are looking ahead to reveal the final reading of the manufacturing PMI by Markit on the US which may reflect a widening of 50.0 vs. a contraction of 49.9 in the initial reading of last month and versus a widening of 50.4 in July, comes before The Construction Spending reading, which reflects a rise of 0.3% against a decline of 1.3% in June.
Markets from the world's largest industrialized nations are also looking to reveal the ISM Manufacturing Index, which may show a steady expansion at 51.2, little changed from July, while the same price index reading could show contraction shrinking to 47.6 vs. 45.1, up to a member's speech. Federal Open Market Committee and Federal Reserve Bank President Eric Rosengren about the US economy at Stonehill College in Massachusetts.
The EURUSD pair resumed its negative trading yesterday strongly to approach the 1.0900 barrier now, reinforcing expectations that the bearish trend will continue during the coming sessions, which is regulated within the descending channel shown on the chart, waiting to test 1.0857 as the next main stop.
SMA 50 continues to support the suggested bearish wave, keeping in mind that a break of 1.1005 may temporarily stop negative pressure to test 1.1125 then 1.1180 areas before any fresh attempt to fall.
Expected trading range for today is between 1.0850 support and 1.1000 resistance.
Expected trend for today: Bearish.