EUR/USD targets 1.1200 on PMIs, Fedspeak on sight

EUR/USD has gathered extra traction on Friday, now approaching the 1.1180/90 area backed by USD-weakness and upbeat manufacturing PMIs in the region.

EUR/USD bid on data, USD-selling

The pair regained attention today after advanced manufacturing PMIs in Euroland are expected to come in on the strong side during the current month, as opposed to the gauges from the services sector, which are seen deteriorating somewhat.

In addition, the selling bias around the buck seems to have returned today despite positive comments by FOMC speakers earlier in the week left the door open for further tightening by the Fed later in the year.

In the meantime, the pair is recording fresh 4-day tops although data from EUR futures markets prompt some caution, as the current upside could lack of sustainability.

Nothing else expected on the data front in the region, whereas new home sales and speeches by St. Louis Fed J.Bullard (2019 voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish) and J.Powell (permanent voter, centrist) should keep the attention on the greenback.

EUR/USD levels to watch

At the moment, the pair is up 0.29% at 1.1184 facing the next up barrier at 1.1202 (20-day sma) seconded by 1.1296 (2017 high Jun.14) and finally 1.1300 (high Nov.9). On the other hand, a breakdown of 1.1130 (low Jun.15) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339).