EUR/USD advances further to test 5-DMA, EZ PMIs eyed

The EUR/USD pair caught a fresh bid tone last hour, finally breaking higher from the overnight consolidative mode to regain 1.06 handle.

EUR/USD: Eyes on EZ PMIs, US ISM                                                                 

Currently, EUR/USD jumps +0.23% to hit fresh session highs of 1.0617, having taken-out 5-DMA located at 1.0615. The main currency pair reversed a brief dip below 1.06 handle and now extends the breakout beyond the last, largely on the back of fresh selling seen in the US dollar against is major peers. The USD index drops -0.25% to fresh session lows of 101.35, extending retreat from 101.87 – yesterday’s top.

On Wednesday, EUR/USD dropped almost one big figure on renewed demand for the greenback, as risk-on persisted at full swing amid a 9% oil-price rally and rising treasury yields.

The major now awaits the Eurozone final manufacturing PMI readings and employment figures for fresh impetus on the EUR, ahead of a slew of US economic releases, including the US ISM manufacturing PMI report, due later in the American morning.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0631 (Nov 25 high). A break beyond the last, doors will open for a test of 1.0685 (weekly high) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0603 (10-DMA) below which 1.0561 (Nov 28 low) and 1.0535 (Nov 25 low) could be tested.