EUR/USD clings to gains in the 1.1760/70 band

• Mixed PMIs added support to EUR
• Positive performance from US yields caps the upside
• Consolidation likely ahead of ECB meeting

The upbeat tone stays well and sound so far today around the shared currency, taking EUR/USD to the 1.1760/70 band following the release of flash PMIs in Euroland.

EUR/USD propped up by data, looks to ECB

Spot keeps the positive fashion so far today after German, French and EMU’s advance manufacturing PMIs are expected to come in on a strong note in October.

Today’s results also add to yesterday’s improvement in the consumer confidence gauge tracked by the European Commission, all lending support to the European currency.

However, the now better tone around yields of the key US 10-year benchmark keep limiting occasional bullish attempts in spot, while the US Dollar Index (DXY) remains steady in the 93.80 area.

Looking ahead, spot is likely to remain within a sideline theme ahead of the key ECB event on Thursday. This potential scenario is also reflected in the recent activity in EUR futures markets.

EUR/USD levels to watch

At the moment, the pair is up 0.05% at 1.1755 and a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2). On the flip side, the next support is located at 1.1725 (low Oct.23) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). In addition FXStreet’s technical confluence indicator (TCI) notes important resistance area around 1.1780/85, ahead of the more relevant 1.1810 zone, consistent of a pivot point, a Fibo retracement and the 10-day sma.