German/ Eurozone flash PMIs preview: What to expect of EUR/USD?

The EUR/USD pair failed another attempt to take-out 1.1350 barrier, now drifting slightly lower to consolidate in the familiar range near 1.1335 region. Renewed optimism backed by hopes for Bremain and a broadly lower US dollar continues to extend support to the major ahead of the EU referendum, with polling stations likely to open up at 06.00GMT.

Data-wise, we have a raft of flash manufacturing and services PMIs from the Euro area economies on the cards from 07.00GMT onwards.

German manufacturing sector activity to deteriorate in June

Amongst the Euro are economies, the PMI reports from Germany and Eurozone as an entire bloc hold more relevance, in terms of its impact on the European currency and the markets as well.

The forecast for the Eurozone flash manufacturing PMI shows 51.3 for June, slightly lower than the 51.5 recorded a month ago, and the Eurozone services sector is also expected to show a lower result of 53.1 from the final 53.3 reported in May.

The flash manufacturing PMI for Germany is expected to tick lower to 51.9 compared to the final 52.1 result booked in May. While, the index for the services sector is expected to worsen to 55.0 in June, against 55.2 last.

Little reaction is expected on the PMIs release as the Brexit vote will remain the main market moving event for today, and hence, markets may completely ignore better/worse PMI reports as all eyes will remain on the developments surrounding the Brexit poll.

EUR/USD Technical Level

At 1.1335, the pair finds the immediate resistance 1.1350 (psychological levels). A break beyond the last, doors will open for a test of 1.1386 (Jun 20 high). On the flip side, the immediate support is placed at 1.1312/00 (5 & 50-DMA) below which at 1.1246 (100-DMA) could be tested.