EUR/USD bounces-back above 1.0800 on upbeat PMIs

The EUR/USD pair witnessed a fresh buying-wave in the European session, as the bulls finally broke away from the Asian consolidation phase near daily troughs.

The rebound in the spot can be partly attributed to above estimates flash readings of the German and French manufacturing PMI reports, with the German output growth reaching the strongest levels in nearly six years in March.

Additionally, broad based USD retreat in tandem with the treasury yields also aided the EUR/USD recovery. Furthermore, mixed start to the European equities weighed on the appetite for risk assets, in turn boosting the funding currency status of the Euro.

The immediate focus now remains on the Eurozone composite PMI release and FOMC member Evans speech due during the European hours, while the US durable goods data will take center stage in the NA session.

However, all eyes will be glued to the outcome of the US House vote on the Healthcare plan, which will start between 2-4PM EDT later today.

EUR/USD Technical Levels   

Jim Langlands at FXCharts noted, “While the 4 hourlies are pointing lower, the dailies remain positive and although it will be difficult today, a break of 1.0830 could then see a run towards 1.0873 (8 August high) and eventually on to the 200 DMA (1.0900) and possibly higher, towards 1.0935 and eventually to 1.1000.”

“On the downside, below the Thursday low of 1.0767, minor support will be seen at the various Fibo levels from the move up from the recent 1.0490 low, beginning at 1.0745 and then at 1.0695.  As before, given the positive look of the daily charts, it would appear that buying dips is the current plan but I would keep a SL placed below 1.0730, while on the topside I am looking for a break of 1.0830, hoping for a run towards 1.0900,” Jim added.