EUR/USD Remains Capped Below 1.1240 ahead of PMIs
The EUR/USD
pair is seen moving back and forth in narrow range amid a quiet
session, awaiting fresh impetus from a series of services and
manufacturing PMI reports to be released from the Euro area.
EUR/USD supported at 5-DMA
Currently, EUR/USD trades +0.07% higher at 1.1231, having found solid
support at 5-DMA located at 1.1220. The main currency pair trades
directionless in early Europe, maintaining its range trade above 1.12
handle, as the bulls await fresh impetus from the PMI readings, which
are expected to show improvement in the German and Euro zone
manufacturing sector activities.
The forecast for the Eurozone flash manufacturing PMI shows 51.9 for
May, slightly higher than the 51.7 recorded a month ago, and the
Eurozone services sector is also expected to show a higher result of
53.3 from the final 53.1 reported in April. While the flash
manufacturing PMI for Germany is seen higher at 52.0 compared to the
final 51.8 result recorded in April.
While, the index for the services sector is expected to come in at 54.6 in May, against 54.5 seen previously.
Looking towards the American session, we have a data-quiet US calendar
to kick-off an eventful week ahead, with only the US flash manufacturing
PMI report due on the cards.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at
1.1274 (10-DMA). A break beyond the last, doors will open for a test of
1.1300/08 (round number/ 1h 200-SMA). On the flip side, the immediate
support is placed at 1.1200 (psychological levels) below which at 1.1182
(100-DMA) could be tested.
