EUR/USD prints fresh lows under 1.0470

EUR/USD continues to move with an intraday bearish bias, on a quiet session. The pair printed a fresh low under 1.0480. It has fallen 25 pips during the last five hours. The US remains strong in the market. 

Decline continues amid low volume, despite PMI

The pair dropped to 1.0466 and it was trading at 1.0467, 50 pips below Friday’s closing price. Markets continue to move in holiday mode. Price action remains limited and it could continue until Tuesday’s European session. 

The most important economic release today was the European PMI. The headline number for the Eurozone came in line with expectation at 54.9 (similar to the flash estimate), the highest reading since April 2011. “Eurozone manufacturers are entering 2017 on a strong footing, having ended 2016 with a surge in production”, said Chris Williamson, Chief Business Economist at Markit. 

EUR/USD Levels to watch 

According to Valeria Bednarik, Chief Analyst at FXStreet, further slides below 1.0470/75 could lead to a decline down to the 1.0420/40 region, while below 1.0410 the downward momentum can extend towards 1.0370/80. “Should the pair recover the 1.0500 region, the downward potential will be limited, although it will need to advance beyond 1.0530 to be able to regain some upward strength and advance up to 1.0575, the 23.6% retracement of  its latest bearish run.”