EUR/USD finds support near 1.1960

After climbing to session tops beyond 1.2000 the figure on Friday, EUR/USD sparked a correction lower to the 1.1960 area, where its is now looking to rebound.

EUR/USD bolstered by PMIs

The pair failed to extend the upside momentum beyond the 1.2000 handle today despite positive preliminary results from manufacturing PMIs in Euroland for the current month bolstered the demand for EUR.

In addition, the speech by President M.Draghi in Ireland was innocuous while VP V.Constancio said earlier in the session that the recent appreciation in the exchange rate may be a limited effect. Still with speakers, FOMC’s Williams advocated for further gradual tightening by the Federal Reserve.

Data wise in the US calendar, Markit’s advanced manufacturing PMI for the month of September is only due, while the speeches by KC Fed E.George (2019 voter, hawkish) and Dallas Fed R.Kaplan (voter, hawkish) should keep the focus on the buck following the latest FOMC meeting.

EUR/USD levels to watch

At the moment, the pair is up 0.26% at 1.1973 facing the next resistance at 1.2004 (high Sep.22) followed by 1.2024 (high Sep.20) and then 1.2069 (high Aug.29). On the downside, a breakdown of 1.1877 (5-month support line) would target 1.1837 (low Sep.14) en route to 1.1785 (55-day sma).