EUR/USD needs to surpass 1.2160 to recover bullish potential

The greenback is down on Monday, with EUR/USD trading around 1.2050, recovering from a daily low of 1.2012. Nonetheless, its bullish potential is limited, Valeria Bednarik, Chief Analyst at FXStreet, reports.

EU Markit Manufacturing PMIs suffered downward revisions in April

“Germany published March Retail Sales, which unexpectedly rose by 11% YoY, much better than the -3.1% expected. In the month, sales were up 7.7%. However, Markit published the final versions of its April Manufacturing PMIs, which were downwardly revised. The German index printed at 66.2 while the EU reading resulted in 62.9, below the 63.3 previously estimated.”

“Markit will publish the US final Manufacturing PMI, foreseen at 60.6, while the country will release the official ISM Manufacturing PMI, expected at 65 from 64.7 previously.”

“Technical indicators have recovered from near oversold readings but remain within negative levels and lacking enough strength to confirm a bullish continuation.” 

“The EUR/USD pair needs to clear 1.2060, to have chances of extending its advance in the upcoming sessions.”