EUR/USD slips below 1.0750 on weak Eurozone PMI data, USD strength

EUR/USD has declined 0.2% to 1.0740 after Eurozone PMI data showed a contraction in business activity in May. The Composite PMI fell to 51.8 from 54.1 in April, missing expectations of 52.5. Services PMI dropped to 52.5 from 55.0, while Manufacturing PMI slid to 44.6 from 45.8, indicating worsening economic conditions. The soft data has dampened optimism about the Eurozone's recovery, weighing on the euro. Meanwhile, the US dollar has found support from higher US Treasury yields, with the 10-year yield rising 2 basis points to 3.70%. Immediate support for EUR/USD is seen at 1.0720 (5-day low), while resistance lies at 1.0790 (20-day MA). A break below support could accelerate losses towards 1.0680, while a recovery above resistance might lead to a retest of the 1.0820 level.