EUR/USD eyeing a break above 1.0900 on upbeat PMIs

Dhwani Mehta FXStreet

The bid tone behind the shared currency receives further boost following the release of stronger PMI readings from the Euro area, now pushing the EUR/USD pair closer to 1.09 handle.

EUR/USD rebounds from near 7-month troughs

Currently, EUR/USD trades +0.07% higher near fresh session highs of 1.0893, with 1.09 handle now just a whisker away. The main currency pair staged a solid comeback and swung back into positive territory, after the US dollar gave up all of its gains versus the main competitors amid a major turnaround in risk condition, in wake of higher European stocks and oil prices.

While the latest leg higher in the major can be mainly attributed to better-than expected flash manufacturing and services PMI reports from across the Euro area, with Germany driving Eurozone growth to the strongest level so far this year, as cited by Markit.

German Markit manufacturing flash PMI for Oct came in at 55.1 versus 54.4 expected, while the Eurozone flash manufacturing PMI results stood at 53.3 versus 52.6 predicted. Looking ahead, the major now awaits the US flash manufacturing PMI report and speeches from Fed members Bullard and Dudley due later in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0911 (5-DMA). A break beyond the last, doors will open for a test of 1.0953 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0850 (psychological levels) below which 1.0820 (March lows) and 1.0800 (round figure) could be tested.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0881

30% Bullish
70% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0850

47% Bullish
53% Bearish
0% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0790

42% Bullish
42% Bearish
16% Sideways

Bias Neutral

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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