EUR/USD consolidates the upside near 1.1180, PMIs eyed

The EUR/USD pair extends its Asian consolidation phase into the early European trades, confined in a tight range below 1.12 handle.

EUR/USD capped below 1.1200

Currently, EUR/USD trades +0.06% higher at 1.1181, having found strong bids at 1.1166 levels. The main currency pair is seen oscillating back and forth in 20-pips narrow range since the overnight trades, consolidating last week’s upsurge triggered by worse-than expected US GDP data for the second quarter, which poured cold water once again on Sept Fed rate hike bets.

The common currency treads water in the upper bound of 1.11 handle and gathers pace for a decisive break above 1.12 barrier, with markets expecting the final manufacturing PMI reports from across the Euro area to provide the much-needed push higher.

Besides, trading is expected to remain light as markets in Australia, Switzerland and Canada remained closed today in observance of their respective national holidays. While from the US docket, Markit and ISM manufacturing PMI reports will be closely tracked for further incentives on the greenback.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1200 (psychological levels). A break beyond the last, doors will open for a test of 1.1229 (100-DMA). On the flip side, the immediate support is placed at 1.1150/31 (50 & 5-DMA) below which 1.1102 (200-DMA) could be tested.