The shared currency is consolidating around the mid 1.28s on Thursday, ahead of the flash manufacturing and services PMI in the euro area.
“Today’s data will likely be a key input for the ECB’s June rate decision, but we think that we would have to see a clear worsening to get the ECB to truly consider cutting the deposit rate into negative territory”, suggested Alvin Pontoh, Strategist at TD Securities.
As of writing the cross is losing 0.09% at 1.2847 and a breakdown of 1.2841 (low May 21) would aim for 1.2809 (low May 20) and then 1.2796 (low May 17).
On the flip side, resistance levels line up 1.3011 (MA21d) followed by 1.3030 (high May 14) and then 1.3051 (high May 10. – FXstreet.com (Barcelona)