EUR/USD struggling to extend its move back above 200-DMA

The EUR/USD pair is seen struggling for direction on Friday and remained stuck around 200-day SMA near 1.1100 region as traders now await from fresh impetus from US ISM manufacturing data.

The pair gained traction after the release of slightly better-than initially estimate Euro-zone manufacturing PMI numbers. The up-move, however, seems to have stalled and the pair has now flattened out around Thursday's closing level. 

Meanwhile, reports on Thursday that ECB might consider easing QE rules on concerns over shrinking pool of eligible debt might cap any sharp up-move for the pair and could even attract fresh selling pressure at higher level. 

Next in focus would be the US ISM manufacturing PMI for June, which is expected to match May's reading and come-in at 51.3 and could provide some momentum for short-term traders.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "in the 4 hours chart, the pair is above a bullish 20 SMA that steadily attracted buying interest on retracements, whilst the technical indicators are bouncing some from their mid-lines, but remain below their previous weekly highs."

"The immediate resistance stands at 1.1130,  with a break above it pointing for a continued advance up to 1.1150/70, with a strong acceleration beyond this last favoring an approach to the 1.1220/40 region. Below 1.1050, on the other hand, the risk turns towards the downside, with 1.1020 and 1.0970 the next intraday supports."