EUR/USD off the highs as German Manufacturing PMI misses

The euro is trading lower against the US dollar today, following a strong reversal from the 1.1200 resistance level on Friday. Intraday bias in EUR/USD remains neutral for consolidation below this temporary top.

Further rise will remain in favor as long as 1.1039 support holds. A clear break and weekly price close above the 1.1200 level this week should be considered extremely bullish for the pair. In that event the bias will turn back to the upside for 100% projection of 1.0879 to 1.1179 from 1.0981 at 1.1281 next.

Ultimately, this is a market that continues to be stuck in a relatively tight range, and even though this last week candlestick has been very bullish, the reality is that the 1.10 level underneath has been extraordinarily supportive. If the bears can break down below the 1.10 level, then the Euro should goes looking towards the 1.0890 level.