EUR/USD analysis: more wait-and-see ahead of US Payrolls

EUR/USD Current price: 1.1205

The EUR/USD pair held around 1.1200 this Wednesday, despite the doubtful  ECB's tightening headlines that triggered the recovery and generally encouraging data released in the US. In Europe, the final Markit composite PMI for the region indicated that the rate of economic expansion across the euro zone eased to a 20-month low in September, as growth  slowed in Germany, Italy, Spain and Ireland. The composite PMI posted 52.6 in September, down from 52.9 in August. Also, EU dropped by less-than-expected in August, down by 0.1% compared to July, and up by 0.6% on a year-on-year basis, down from previous 1.8%.

In the US, the ADP survey came in slightly disappointing, as the private sector employment increased by 154,000 in September, slightly below the 166K expected. Still, economic activity in the non-manufacturing sector grew strongly in September, as the ISM PMI came in at 57.1 against previous 51.5, while new orders for US factory goods increased in August, up by 0.2% from a downwardly revised 1.4%  increase in July, signaling that the US economy is beginning to pick up again.

The pair traded within a well-limited range, retaining the neutral status-quo according to intraday  technical readings, although with a slight inclination towards the downside, as in the 4 hours chart, the price was unable to settle above the congestion of moving averages between 1.1210 and 1.1230, while technical indicators were rejected by their mid-lines during an early attempt to recover ground. The daily descendant trend line coming from this year high stands around 1.1245 for this Thursday, and ahead of the US Nonfarm Payroll report to be released next Friday, seems unlikely the pair will move out of its usual range during these upcoming sessions.

Support levels: 1.1190 1.1160 1.1120                                  

Resistance levels: 1.1245 1.1280 1.1335