EUR/USD advances towards 100-DMA, PMIs eyed

Having witnessed a volatile session last Friday, the EUR/USD pair is seen attempting a steady recovery path from post-NFP lows struck at 1.1150.

EUR/USD eyes Eurozone final services PMI and Sentix

Currently, EUR/USD trades +0.14% higher at fresh session highs of 1.1171, having regained 200-DMA support located at 1.1160. The main currency pair extends its gradual upward momentum into early Europe, as the US dollar corrects lower from post-NFP tops versus its major peers. The USD index drops -0.16% to fresh daily lows of 95.70, extending its retreat from just shy of 96 handle.

The EUR/USD pair, although struggles to extend the recovery as the persisting risk-on moods weigh on the funding currency demand for the euro. Moreover, markets remain divided over Sept Fed rate hike prospects after the disappointing US jobs report. While Goldman Sachs moved up their probability of a hike at the September meeting to 55% on Friday, despite a below-consensus payroll number, also kept investors wary.

Looking ahead, in observance of Labour Day holiday in the US and Canada, the major is expected to witness thin trading. While calendar-wise, we have the final services and Sentix investor confidence from the Euroland up for grabs.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1200 (round number). A break beyond the last, doors will open for a test of 1.1231 (20-DMA). On the flip side, the immediate support is placed at 1.1143 (50-DMA) below which 1.1100 (psychological levels) could be tested.