EUR/USD sold at 1.0800; back below 1.0750

FXStreet (Tokyo) - Money comes, and money goes. After jumping 60 pips post-ADP employment data, the EUR/USD climbed to 1.0800 where it found a selling interest that sent it back below 1.0750 just after the US PMI manufacturing reports.

US manufacturing PMI rose to 55.7 in March; highest since October 2014. The output and new orders components were up; while the export sales were down on strong dollar. Shortly after, the ISM manufacturing PMI reported a decline to 51.5 in March; more than expected and its lowest since Jan 2014. Index remains in expansion field.

Currently, EUR/USD is trading at 1.0733, still up 0.06% on the day, having posted a daily high at 1.0801 and low at 1.0719. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish.

EUR/USD forecast

As I reported earlier today, there were a big option expire in the NY cut for the EUR/USD at 1.0800 (EUR 2.1bln); and another at 1.0750 (EUR 323m).

Yohay Elam from Forexcrunch commented in the FXStreet Forecast Poll that "the euro has probably finished its upwards correction. ECB QE weighs." In addition, BNP Paribas Team expects negative real yields to drive EUR towards parity with the USD by year-end.

Euro to Dollar exchange rate levels

If the pair extends declines below 1.0750, it will find next supports at 1.0725, 1.0701 and 1.0700. To the upside, resistances are at 1.0760, 1.0800 and 1.0820.