EUR/USD Approaching 1.1200 Level ahead of US ISM Manufacturing PMI
Extending its strong bid tone, the EUR/USD pair has surged past Tuesday's peak of 1.1174 and is currently trading near session high level of 1.1180.
The pair shrugged-off slight weaker Euro-zone PMI prints and extended its recovery from day's through level of 1.1110 zone as Tuesday's softer US consumer confidence and Chicago PMI data seems to hurt the greenback.
Investors now shift their focus to today's release of the US ISM manufacturing PMI. A disappointing number would force investors to reassess the possibilities of a Fed rate-hike and hurt the greenback.
From technical perspective, the pair has managed to hold and rebound from an important confluence support near 1.1100 handle, comprising of 200-day SMA and a medium-term ascending trend-channel support. Hence, a follow through bid tone now seems to assist the pair to resume its prior up-ward trajectory in the near-term.
Technical levels to watch
On the immediate upside, bulls would be eyeing to recapture 1.1200 handle, which if conquered has the potential to continue boosting the pair in the near-term, initially towards testing its next round figure mark resistance near 1.1300 handle and eventually towards a major resistance near 1.1350-55 area.
Meanwhile on the downside, 1.1135-30 zone now seems to provide immediate support and is closely followed by a strong support near 1.1100 handle. Only a decisive break below 1.1100 handle would negate the expectations of a further pull-back and turn the pair vulnerable to further downside in the near-term.