Forex: EUR/USD hits daily low after ISM

The dollar strengthened versus most competitors during the New York session after a report showed the services sector in the US improved more than expected in February. The ISM non-manufacturing PMI rose to 56 versus 55 expected, printing its highest level in a year.

EUR/USD fell to a fresh daily low of 1.3011 after the data and was last trading around 1.3015, a few pips below its opening price.

From a technical view, Valeria Bednarik, chief analyst at FXstreet.com recently commented that even though the pair might extend its recovery above 1.3080, the wider picture remains bearish for EUR/USD. Bednarik locates next support levels at 1.3010, 1.2980 and 1.2940, while she sees resistances at 1.3080, 1.3220 and 1.3260.