EUR/USD turns positive above the 1.1700 mark

• EUR/USD rebounds from recent lows in the 1.1670 region.
• German flash manufacturing PMI surprised to the upside in September.
• Powell’s testimony, data next of relevance in the US docket.

The selling pressure around the European currency appears to have lost some traction, with EUR/USD now regaining the positive ground above 1.17 the figure.

EUR/USD focused on data, USD

EUR/USD is therefore reversing three consecutive sessions with losses on Wednesday against the backdrop of the improved sentiment surrounding the greenback.

In addition, recent comments from ECB officials reiterated that the exchange rate remains under the microscope, which has collaborated with the recent leg lower in the pair.

In the calendar, extra support came in for the single currency after German preliminary manufacturing PMI rose to the highest level since January 2018 at 56.6 for the current month. Same gauges of the manufacturing sector surprised to the upside in both France and the broader Euroland.

Across the pond, weekly MBA’s Mortgage Applications are due seconded by speeches by FOMC’s Mester, Evans and Quarles, all ahead of the second testimony by Fed’s Powell, this time before the House of Representatives.

What to look for around EUR

EUR/USD recorded fresh 2-month lows near 1.1670 on Wednesday, where it seems that some decent support has turned up so far. Despite the move, the pair’s outlook remains positive and bearish moves are deemed as corrective only. Further out, the underlying constructive bias in the euro remains underpinned by auspicious results from domestic fundamentals (which have been in turn supporting further the view of a strong economic recovery after the slump in the activity during the spring), the so far calm US-China trade front and the steady – albeit vigilant- stance from the ECB. The solid position of the EMU’s current account coupled with positive positioning of the speculative community also lends wings to the shared currency.

EUR/USD levels to watch

At the moment, the pair is gaining 0.03% at 1.1711 and a breakout of 1.1917 (high Sep.10) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the flip side, immediate contention lines up at 1.1672 (monthly low Sep.23) seconded by 1.1495 (monthly high Mar.9) and finally 1.1447 (50% Fibo of the 2017-2018 rally).