EUR/USD volatile, fades the spike to 1.1180

A bout of buying pressure has quickly lifted EUR/USD to the area of daily highs near 1.1180, although the up move run out of steam soon afterwards.

EUR/USD bid on PMIs, ECB

Spot leapt to the 1.1180 area following comments by ECB’s Lautenschlaeger, arguing that there is no need for further rate cuts.

Adding to the now bid tone around the common currency, final Services PMIs in Germany and the euro area have surpassed expectations ahead of the release of EMU’s Retail Sales.

The pair has been also supported by the increasing upside bias in EUR/GBP, as the British pound continues to shed ground ahead of the BoE’s FSR and the speech by Governor Carney.

EUR/USD levels to watch

The pair is now losing 0.01% at 1.1153 and a break below 1.0913 (post-Brexit low Jun.24) would open the door to 1.0820 (low Mar.10) and finally 1.0709 (low Jan.5). On the other hand, the initial resistance aligns at 1.1177 (base of the 6-month up-channel) followed by 1.1202 (20-day sma) and then 1.1266 (55-day sma).