EUR/USD: Struggle with 1.1250 continues ahead of PMIs, Ifo

The EUR/USD pair extends its consolidative mode into the European trading, as the bulls await the Euro area flash PMI reports and German Ifo surveys for next leg higher.

EUR/USD eases-off 6-month tops of 1.1263

The major keeps the bid tone intact in early Europe, as the funding currency status of the Euro remains somewhat boosted amid mild risk-aversion prevalent in markets, after the Manchester terror attack witnessed overnight.

Moreover, the spot also benefits from subdued trading activity seen around the greenback versus its main competitors, in response to unimpressive budget release by the White House. The USD index trades modestly flat around 96.80 levels, while the benchmark 10-year treasury yields drop -1% so far.

All eyes now remain on a flurry of flash services and manufacturing PMI reports from the Euro area, which will be followed by the German Ifo business climate data. Later in the NA session, we have the US flash manufacturing PMI and new home sales data, alongside the Fedspeaks.

EUR/USD Technical Levels

Jim Langlands at FX Charts noted: “ The dailies though do still point to an eventual move up, and above the initial resistance will at 1.1260 there is little to stop it heading back to 1.1300, beyond which, the points to watch are at 1.1365 (18 Aug high), 1.1427 (24 June high) and then at 1.1450 (major descending trend resistance).

On the downside, minor support will be seen at 1.1200/15 ahead of the session low of 1.1160. Below here seems doubtful today, but if wrong, look for a run back towards 1.1100. Buying dips remains the preferred medium term option,” Jim added.