EUR/USD breaches 1.2160 on upbeat ISM

• US ISM manufacturing beats estimates in January at 60.8.
• The pair keeps the red near session lows in the 1.2170/60 band.
• Coming up next Powell’s testimony before the Senate Banking Committee.

EUR/USD is trading close to the area of daily lows around 1.2160 following the publication of the critical US ISM manufacturing.

EUR/USD now looks to Powell

Spot remains entrenched into the negative ground today after US ISM manufacturing surprised markets to the upside in January, advancing to 60.8 from December’s 59.1. In addition ISM Manufacturing Prices and ISM Manufacturing Employment came in above initial estimates, adding strength to the release.

Spot will now look to Fed’s Powell testimony before the Senate Banking Committee, where investors largely anticipate a similar tone as Tuesday’s first testimony.

The pair’s downside has broken below the critical support at 1.2165 (low January 18) and is now exposing the next key support at 1.2090 (high January 4).

EUR/USD levels to watch

At the moment, the pair is losing 0.23% at 1.2165 and a breach of 1.2155 (low Mar.1) would target 1.2090 (high Jan.4) en route to 1.1916 (2018 low Jan.9). On the upside, the immediate hurdle is located at 1.2301 (10-day sma) seconded by 1.2337 (21-day sma) and then 1.2356 (high Feb.26).