EUR/USD remains in consolidation mode, holding above the Monday low of 1.2550 and below the 1.2600 level where stale longs continue to trim positions. While a barrage of central bank liquidity is expected to hit the markets in the next few weeks, risk assets are not in strong demand today. Lousy Chinese PMI data seems to be casting a shadow over the markets at the moment.
Buyers are seen ahead of yesterday’s lows but small stop-loss sell orders are seen gathering below the 1.2550 level. The 10-day moving average come in at 1.2543; more small stops are eyed below that level.
