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EUR/USD recovers to 1.1165 as EU stocks rally fizzles

FXStreet (Mumbai) - The EUR/USD pair found fresh bids just below the 100-DMA then located at 1.1140 levels and attempts a weak recovery as the European stocks take a breather in their rally, with markets digesting a set of dismal PMIs from the Euro zone.

Heads towards daily highs

The EUR/USD pair trades -0.18% lower at 1.1157, recovering from fresh weekly lows struck at 1.1136 levels post the PMIs. The offered tone around the EUR/USD pair eased a bit as the stocks on the European indices halted their upsurge and retreated from highs, in a delayed reaction to the weak German and EU manufacturing PMI reports.

The pan-European benchmark, the Euro Stoxx 50 now trades 0.77% higher at 3,124, retreating from 3,142 .50 highs. While the DAX also drops from 9,786 highs and trades +0.46% at 9,700 levels.

On the data space, the final manufacturing PMI for the euro zone came in at 52.0 points in the ninth month of the year, and below August's reading of 52.3, although matched estimates. While Germany’s final PMI for manufacturing sector fell to 52.3 in Sept, down from August's final reading of 53.3 points, against 52.5 expectations.

Later in the day, attention turns towards a slew of US macro data including the ISM manufacturing survey, weekly jobless claims and construction spending data for fresh incentives.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1179 (Today’s High), above which gains could be extended to 1.1204 (50-DMA) levels. On the flip side, support is seen at 1.1100 (Psychological levels) below which it could extend losses to 1.1079 (200-DMA) levels.

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