EUR/USD firmer above 1.1200 ahead of PMIs

The single currency continues to recover part of yesterday’s pullback, now taking EUR/USD to the 1.1210/15 band ahead of data releases.

EUR/USD focus on PMIs, ADP

After bottoming out near 1.1130 on Tuesday, the pair has managed to revert the drop and regain the 1.1200 handle amidst a renewed offered bias in the greenback.

Spot is now reverting two consecutive pullbacks, as the recent bullish momentum in the buck seems to have run out of steam after solid advances on Monday and Tuesday, taking the US Dollar Index to multi-day peaks.

Later in the session, final Services PMIs for the month of September are due in Euroland ahead of EMU’s Retail Sales. Across the pond, the ADP report is expected to come in at 166K, followed by the ISM Non-manufacturing, Trade Balance figures and Factory Orders.

Regarding positioning, it is worth mentioning that speculative EUR longs have climbed to 4-week highs during the week ended on September 27, prompting net shorts to scale back to levels last seen in late August.

EUR/USD levels to watch

The pair is now up 0.06% at 1.1211 and a break above 1.1268 (resistance line off 2016 high) would target 1.1279 (high Sep.26) en route to 1.1329 (high Sep.8). On the other hand, the next support aligns at 1.1165 (200-day sma) followed by 1.1097 (2014-2016 support line) and then 1.1043 (low Aug.5).