EUR/USD in flat-lining above 10-DMA, EU PMIs eyed

By FXStreet FXStreet (Mumbai) – EUR/USD is seen trading around a flat-line above 10-DMA placed at 1.1020 since mid-Asia, and extends the side-trend into the early European trades.

EUR/USD supported at hourly 100-SMA

The EUR/USD pair trades 0.21% at 1.1027, capped below the daily R1 located at 1.1039. The major consolidates in the upper band of today’s trading range, having jumped-off strong support placed near the hourly 100-SMA at 1.1008 levels.

The main currency pair witnessed fresh bids near 10-DMA following the release of the Caixin Chinese PMI report, which stoked concerns over the ongoing China slowdown worries and accelerated the downside in the Asian indices. As a result, risk-off trades re-emerged and investors favoured safe-haven currencies such as the euro. Japan’s Nikkei slumps over 2% while Australia’s S&P ASX closed -1.14%. While China’s A50 index drops -0.30% heading into closing hours.

Meanwhile, markets now shift their focus towards a flurry of final manufacturing PMIs from the Euro area economies, with limited impact expected from these readings. While the major will track the sentiment on the European stocks in the session ahead.

EUR/USD Technical Levels

The pair holds firmly above 1.10 handle, with the immediate resistance seen at 1.1038/9 (daily high + R1). A break above …read more

Source:: FX Street