FXStreet (Mumbai) – The shared currency picked-up in its recovery versus the US dollar in the European session, driving EUR/USD towards fresh session highs near 1.1130 region.
EUR/USD clinging to 1.11 handle
The EUR/USD pair trades 0.22% higher at 1.1130, retreating slightly from fresh session highs of 1.1134 reached last minutes. The main currency pair extends its recovery mode from Thursday’s slump and now heads for a test of 100-DMA located 1.1158, as a sharp rebound in the German yields boost the EUR bulls. The benchmark 10-year yield on the German bunds rallies nearly 2% to 0.513%, recovering from a dip to 0.482 seen in late-Asia.
While the EUR/USD pair also remains underpinned after a set of Euro zone Oct PMIs beat estimates. The flash manufacturing PMI for the euro zone remained unchanged at 52 points in Oct against 51.8 expectations. While EU services PMI report rose slightly to 54.2 points in Oct, up from 53.7 a month ago and above 53.5 estimates.
In the day ahead, the major will continue to track the sentiment on the European as well as the US stocks as the macro calendar now remains data-empty.
EUR/USD Technical Levels
The pair recovers extends above 1.11 barrier with the next the immediate resistance at 1.1158 (100-DMA), beyond which 1.1185 (daily pivot), would be tested and from there to 1.1200 (round number). While immediate support in sight is located at 1.1078/76 (200-DMA + Today’s Low), below which 1.1023/1018 (Aug 12 Low + daily S1) could be tested, a breach of the last would expose 1.0850 (August lows) levels.
(Market News Provided by FXstreet)