NEW YORK (Forex News Now) – The euro slid against the dollar on Wednesday, snapping a recent rally, after disappointing report on the U.S. manufacturing sector heightened fears over the U.S. economic recovery.
In New York afternoon currency trading, EUR/USD hit 1.2994, up 0.02 percent on the day.
Commerce Department data showed earlier that demand for durable goods from American factories fell 1 percent in June, after a fall of 0.8 percent in May. Analysts had expected an increase of 0.9 percent, two global forex news outlets reported.
Excluding the volatile transportation sector, new orders decreased 0.6 percent.
According to forex analysis, EUR/USD was likely to touch support around the low of July 21, 1.2732, and encounter immediate resistance around the high of May 10, 1.3094.
FX traders, meanwhile, awaited the publication of the “Beige Book,” the U.S. Federal Reserve’s reading on regional economic conditions, later in the session.
Elsewhere, the single currency fell versus sterling: EUR/GBP traded at 0.8324, down 0.13 percent.