FXstreet.com (Edinburgh) -After an expected spike just beyond 1.3550 post-German elections, the EUR/USD has returned to the area of 1.3535/40 ahead of the key PMI data in the euro area.

EUR/USD focus on data

The pair is trading in an upbeat tone after Chinese manufacturing PMI bettered to 51.2 for the month of September and Chancellor Merkel came victor from Sunday’s Parliamentary elections in Germany, although the CDU/CSU party (42%) would need to form a governing coalition, most likely with the Green Party (8%) or the SPD (25%). Ahead in the day, advanced manufacturing and services PMI prints are due in the bloc ahead of a speech by ECB’s Mario Draghi. The pair would find extra support as the PMI gauges would point to further improvement, according to market consensus. Across the Atlantic, the Chicago Fed National Activity index and the Markit Manufacturing PMI will be in the limelight.

EUR/USD key levels

As of writing the pair is up 0.09% at 1.3539 with the next resistance at 1.3569 (high Sep.19) followed by 1.3598 (high Feb.5) and finally 1.3660 (high Feb.4). On the downside, a breakdown of 1.3501 (low Sep.19) would open the door to 1.3453 (high Aug.20) and finally 1.3399 (high Aug.28).

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