EUR/USD stuck in 15-pips tight range ahead of PMIs

The recovery in the shared currency lacks momentum, keeping EUR/USD confined within an extremely slim range, as we head into early Europe.

EUR/USD supported near daily pivot                                                              

Currently, EUR/USD trades modestly flat at 1.0628, keeping its range trade intact around hourly 100-SMA located at 1.0630. The main currency pair trades lack-luster on Wednesday, unable to find a clear direction amid light trade and increased cautiousness, as attention turns towards a fresh batch of macro updates from both continents, including the Euro area flash services and manufacturing PMIs and US durable goods numbers.

Meanwhile, a brief phase of upside consolidation seen in the US dollar against its major peers, after yesterday’s rally, also keeps the EUR/USD pair in check. Looking ahead, the common currency remains vulnerable to further downside risks, as divergent monetary policy outlooks between Fed and ECB becomes more prominent.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels/ daily high). A break beyond the last, doors will open for a test of 1.0665 (10-DMA) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0600 (round number) below which 1.0567 (multi-month low) and 1.0556 (Nov 2015 low) could be tested.

To learn more about this topic, check our video analysis