EUR/USD off-lows, but capped by 1.1240 post-PMIs

The EUR/USD pair extends its upside consolidative phase into late-Asia, as the bulls face exhaustion after Friday’s extensive rally backed by renewed optimism surrounding Deutsche Bank.

EUR/USD unperturbed by final PMIs

Currently, EUR/USD trades modestly flat at 1.1233, bouncing-off a brief downward spike to 1.1221, reached at the European opening bells. The main currency pair keeps its range-trade intact, as the euro remains little changed following the releases of a series of final manufacturing PMI reports from across the Euro area economies.

The EUR/USD pair remains confined in a 20-pips narrow range so far this session, as the EUR fails to benefit from strong gains seen in the EUR/GBP cross, mainly driven by heavy selling in the cable amid resurgence of Brexit-related uncertainty.

Meanwhile, the upside lacks follow-through on the back of a renewed risk-on rally in the European equities, amid easing Deutsche bank concerns, which curbs the demand for the funding currency euro.

Calendar-wise, Germany’s final manufacturing PMI for Sept came in at 54.3, as expected, while the Eurozone final manufacturing PMI figure also met estimates of 52.6. Next in focus for the major remains the US ISM manufacturing report due later in the NA session.  

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1251 (Sept 30 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1202 (hourly 200-SMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.