EUR/USD sidelined near 1.1230 ahead of PMIs

The single currency is trading almost unchanged vs. its American peer at the beginning of the week, with EUR/USD hovering over the 1.1230 region.

EUR/USD focus on PMIs, ISM

The pair is extending its consolidative pattern ahead of the opening bell in Euroland on Monday, alternating gains with losses as markets keep struggling for direction amidst inactivity in Australia, China and other countries of the Asia-Pac region.

It will be an interesting session for the pair in light of the releases of the final manufacturing PMIs for the month of September in the euro bloc, while the ISM Manufacturing will grab all the attention across the pond.

In the meantime, spot continues to navigate a narrow range, mainly delimited by the resistance line off 2016 top (today around 1.1260) and the 2014-2016 support line, currently near 1.1120.

Furthermore, market participants remain wary on the potential risks stemming from the banking system in the euro area following the recent cases of Deutsche Bank, Monte Dei Paschi and Commerzbank, momentary taking the probable timing of a Fed’s rate hike to the back burner.

EUR/USD levels to watch

The pair is now losing 0.09% at 1.1230 facing the immediate support at 1.1164 (200-day sma) followed by 1.1122 (2014-2016 support line) and then 1.1043 (low Aug.5). On the flip side, a break above 1.1259 (resistance line off 2016 high) would target 1.1279 (high Sep.26) en route to 1.1329 (high Sep.8).