EUR/USD keeps the red near session lows, just above 1.1800 handle

The EUR/USD pair maintained its offered tone through early NA session and is currently placed near session lows, just above the 1.1800 handle despite mixed US economic releases.

The pair held weaker and had a muted reaction to today's macro releases from the US that showed personal income growth slumped to the weakest level since November and core PCE price index remains below the Fed's 2% target. In fact, personal income was disappointingly unchanged in June, worse than 0.4% growth expected, while personal spending continued with its weaker trend and recorded a tepid growth of 0.1% in June. 

Disappointing personal income/spending data seems to have largely negated the positive impact of a modest uptick in the core PCE price index, at 1.5% y-o-y in June as compared to 1.3% expected. Previous month's reading was also revised higher to 1.5% (from 1.4% reported earlier) and remained supportive of a modest US Dollar recovery move from nearly 15-month lows. 

Next in focus would be the release of US ISM manufacturing PMI, which is expected to have eased to 56.5 in July from previous month's reading of 57.8 and might provide some fresh impetus for short-term traders.

   •  US: ISM manufacturing to print 56.5 for July - Nomura

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the pair has a strong static resistance at 1.1870, with a break above this last exposing the 1.1900/10 price zone. Below 1.1780, on the other hand, the pair could correct lower, with the next intraday supports at 1.1750 and 1.1715, former relevant highs."