FXStreet (Mumbai) – The shared currency is now picking-up strength versus its American counterpart in the European morning, with EUR/USD attemtping recovery from fresh session lows near 1.10 handle.
EUR/USD fails near 1.1050 and retreats
The EUR/USD pair trades 0.15% at 1.1021, hovering close to fresh session lows struck at 1.1012 last minutes. The major faced rejection at 1.1050 levels and drifted sharply lower, after the bulls were left unimpressed by upbeat PMI reading across the euro area economies.
The final manufacturing PMI for the euro zone came in at 52.3 points in Oct, better than the preliminary reading of 52.0. While the German final manufacturing PMI also firmed up to 52.10 in Oct versus 51.6 flash estimates.
However, the major quickly recovered from a knee-jerk downward spike near 1.1010 region and hovers around 20-DMA located at 1.1020 as the negative sentiment on the European stocks boosts the safe-haven status of the euro.
Meanwhile, markets will continue to digest a series of Euro zone PMI reports while the focus now remains on the US ISM manufacturing PMI reading due later in the US session.
EUR/USD Technical Levels
The pair holds firmly above 1.10 handle, with the immediate resistance seen at 1.1039/49 (daily R1 + high). A break above the last, the prices could climb further towards 200-DMA at 1.1084 and from there to 1.11 handle. To the downside, the pair finds immediate support at 1.1008/1.1000 (1h 100-SMA/ psychological levels). Selling pressure will intensify below the last, dragging the pair towards 1.0964 (Oct 30 Low) and below that 1.0900 (round number) could be exposed.
(Market News Provided by FXstreet)