EUR/USD drops further on upbeat US ISM, near 1.1530

• The pair now accelerates the downside to lows near 1.1530.
• The greenback picks up extra pace and climbs to the 95.60/65 band.
• US ISM manufacturing surprised to the upside in August at 61.3.

The better tone in the greenback is now forcing EUR/USD to recede further ground and clinch fresh multi-day lows in the 1.1535/30 band.

EUR/USD offered post-ISM

Spot gathered fresh downside traction after the US ISM manufacturing gauge came in above expectations for the month of August at 61.3, the highest level since 2004.

The auspicious results in the US docket added extra selling pressure to the pair, which remains entrenched into the negative ground and navigating multi-day lows. The sell off in the pair intensified today following the breakdown of the key support at 1.1600 the figure earlier in the session.

Additional data saw Markit’s manufacturing PMI also coming in above estimates at 54.7, while the IBD/TIPP index dropped to 55.7 and  Construction Spending expanded just 0.1% MoM in July.

EUR/USD levels to watch

At the moment, the pair is losing 0.72% at 1.1536 and a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the flip side, the next up barrier aligns at 1.1633 (10-day SMA) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).