Article by ForexTime
The dollar is consolidating gains seen earlier in Asian trade, although EUR-USD has crawled back to near net unchanged levels around 1.0635 after earlier logging a seven-month low at 1.0600. Strong PMI data out of German has underpinned the euro. Remarks over the weekend by San Francisco Fed president Williams that there was a strong case for a December rate hike had been the catalyst for dollar buying, which also sparked a broader decline in commodity prices.
German PMIs much stronger than expected, with the manufacturing reading rising to 52.6 from 52.1 and the services reading jumping to 55.6 from 54.5, which left the composite at 54.9, up from 54.2 in October.
The EUR/USD tested the 1.06 level pushing through last week’s low, and then rebounded slightly to the 1.0627 level. Resistance on the currency pair is seen near the 10-day moving average at 1.0707. Momentum appears to have flattened with the MACD printing near the zero index level reflecting consolidation. The RSI is printing a reading of 31.69, which is just above the oversold trigger level of 30.
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