EUR/USD retreats from highs, around 1.1760 on PMIs

• Advanced PMIs to drive sentiment in the European morning
• Catalonia jitters weighing on bullish attempts
• Rangebound likely ahead of ECB (Thursday)

After testing the vicinity of 1.1720 at the beginning of the week, EUR/USD seems to have found some dip-buyers and climbed as high as the 1.1770 region, just to lose some momentum soon afterwards.

EUR/USD attention to PMIs, Catalonia

The pair is following Monday’s ‘doji’-like candle, looking to extend the consolidative theme ahead of the key ECB meeting on Thursday. It is worth mentioning that consensus among traders expects the central bank to deliver a somewhat dovish message regarding its current QE programme.

In addition, Spain remains in centre stage as Catalan government warned of civilian disobedience while President M.Rajoy prepares direct rule.

Looking ahead, flash manufacturing/services PMIs for the month of October are expected during the European morning, while Markit will also publish its gauges in the US economy later in the NA session.

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.