EUR/USD jumps above 1.1200 after disappointing US data

EUR/USD jumped more than half a cent in a matter of minutes as the dollar took a hit from much-lower-than-expected US economic data.

US Non-Manufacturing PMI gauged by the Institute for Supply Management (ISM), dropped to 51.4 in August from 55.5 the previous month, and below the 55.0 expected. This marked the lowest reading since January 2010 and the worst single-month decline since 2008.

Separated data showed IBD/TIPP Economic Optimism index fell to 46.7 in September, below the 48.6 reading expected.

EUR/USD rallied to a peak of 1.1214 from around 1.1160 pre-data and it was last trading at the 1.1210 zone, recording a 0.58% gain on the day.

EUR/USD levels to watch

In terms of technical levels, immediate resistances could be found at 1.1251 (Sep 2 high), 1.1300 (psychological level) and 1.1340 (Aug 26 high). On the other hand, next supports are seen at 1.1138 (50-day SMA), 1.1127 (200-day SMA) and 1.1045 (Aug 5 low).