EUR/USD: On the defensive ahead of Eurozone services PMIs

• EUR/USD fell to two-week lows near 1.1309 yesterday, signaling an end of the corrective bounce from the Feb. 15 low of 1.1234. 
• The shared currency could slide further if the Eurozone services PMIs disappoint expectations. 

EUR/USD is on the back foot, having charted a bearish lower high along key resistance at 1.1407 (61.8% Fib R of 1.1514/1.1234). 

The common currency took a beating yesterday despite the improvement in the Eurozone Sentix Investor Confidence, possibly on fears that the US-China trade deal and the resulting risk-on may embolden the Fed to hike rates. 

The currency pair hit a low of 1.1309 yesterday and was last seen trading at 1.1329. 

The minor bounce could be short-lived if both German and Eurozone services PMIs, due for release in Europe, disappoint expectations. Also, Italy will be reporting its fourth-quarter growth rate 09:00 GMT and a weaker-than-expected print could bolster the bearish pressures around the common currency. Apart from the data, the Euro will continue to take cues from the US-China trade negotiations. 

Further, caution ahead of the European Central Bank rate decision, due tomorrow, could keep volatility low. The central bank is widely expected to remain on a wait and watch mode. 

That said, a big miss on the German services PMI data, due today, could trigger expectations of a dovish turn, leading to deeper losses in the common currency ahead of the ECB.

Technical Levels