EUR/USD recovery stalled near 1.1230

By FXStreet FXStreet (Edinburgh) – The upside momentum in EUR/USD seems to have run out of steam in the area of 1.1230 during the NA session on Monday.

EUR/USD focus on PMIs

With August and the usual adjustments of month-end flows already in the rear-view mirror, market participants should now concentrate on the upcoming final manufacturing PMI figures in Euroland due tomorrow ahead of the ECB meeting on Thursday.

Markets bets remain on the dovish side on the ECB meeting, with the Council expected to express its concerns over the lack of pick up in inflation figures. The heavy tone should prevail in EUR ahead of the event, as traders could start to factor in the possibility of either an extension of QE or an increase of the central bank’s purchases.

EUR/USD key levels

At the moment the pair is advancing 0.26% at 1.1217 and a breakout of 1.1263 (high Aug.31) would target 1.1309 (high Aug.28) en route to 1.1364 (high Aug.27). On the flip side, the immediate support lines up at 1.1170 (low Aug.31) followed by 1.1156 (low Aug.28) and finally 1.1107 (low Aug.20).
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Source:: FX Street