EUR/USD hit by weak Eurozone PMI data

The EUR/USD got another reality check earlier today with the release of disappointing PMI data from the eurozone, suggesting that growth in Q2 may be lower than expected. Add to this the ongoing French election uncertainty and the rise of far-right parties across Europe, and the recent rise in oil prices, the short-term outlook continues to look bearish.

As such, I wouldn't be surprise if the EUR/USD now establishes a new ceiling below the 1.07 handle, with the bears having defended prior broken support levels such as 1.0750 and 1.0790 successfully. The next potential support is the trend support at 1.0650, following by the prior low made in April around 1.06 handle.

By Fawad Razaqzada, market analyst at FOREX.com