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EUR/USD spikes to 1.1255 on EZ data, returns to 1.1235

FXStreet (Mumbai) - Following a raft of mixed final services PMI across the Euro area economies, with EMU services sector witnessing a solid expansion, the shared currency climbed higher versus the US dollar, boosting EUR/USD towards 1.13 barrier.

EUR/USD rises on PMIs release

The EUR/USD trades 0.44% higher at 1.1235, easing off from, 1.1256 levels reached shortly after the data release. EUR/USD remains elevated, after testing 1.1271 highs earlier in the session and now trades near 1.1250 levels after the euro zone services PMI printed 54.1 in April, down from 54.2 in March, while the figure for Germany, Europe's largest economy, ticked lower to 54.0 from 55.4 in March.

Moreover, a broadly weaker US dollar dragged down by dismal US trade data and services PMI reading continues to lend support to EUR/USD.

However, the upside in EUR/USD remains capped as ADP employment data are due during the US session which is expected to post a 200,000 increase in jobs, may give life to the US dollar, dragging the major lower.

Later this week, the critical non-farm payrolls figures are due on Friday which is expected to provide fresh direction on the main currency pair.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1271 (Today’s High) levels, above which gains could be extended to 1.1300 levels. On the flip side, support is seen at 1.1200 below which it could extend losses to 1.1153 (March 3 Low) levels.

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