EUR/USD supported around 1.0860, PMIs eyed

Pablo Piovano FXStreet

The single currency has reverted part of its earlier losses vs. the greenback, now taking EUR/USD to the 1.0880/85 band.

EUR/USD focus on PMIs, Fedspeak

The pair seems to have found some decent support around the 1.0860 area at the beginning of the week, regaining some pips early in the European morning and managing to reclaim the positive territory.

The ongoing USD rally seems to have run out of steam at the moment, allowing the current rebound in spot after last week’s deep pullback from peaks near 1.1040.

In the data space, advanced Manufacturing/Services PMIs for the current month are due in Europe today. Across the pond, Markit’s flash Manufacturing PMI and the Chicago Fed National Activity index are also due along with speeches by NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral).

On the data front, EUR speculative net shorts have increased to the highest level since late July, with shorts back to levels last seen in early November 2014 and longs up to levels seen in January 2012.

EUR/USD levels to watch

The pair is now up 0.02% at 1.0884 facing the next resistance at 1.0952 (2014-2016 resistance line) followed by 1.1009 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Low
1H	Bullish	Overbought	Low
4H	Strongly Bearish	Neutral	High
1D	Bullish	Overbought	High
1W	Strongly Bearish	Neutral	Expanding
Updated Oct 21, 05:45 GMT

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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