EUR/USD eyeing a break above 1.0900 on upbeat PMI
The bid tone behind the shared currency receives further boost following the release of stronger PMI readings from the Euro area, now pushing the EUR/USD pair closer to 1.09 handle.Currently, EUR/USD trades +0.07% higher near fresh session highs of 1.0893, with 1.09 handle now just a whisker away. The main currency pair staged a solid comeback and swung back into positive territory, after the US dollar gave up all of its gains versus the main competitors amid a major turnaround in risk condition, in wake of higher European stocks and oil prices.While the latest leg higher in the major can be mainly attributed to better-than expected flash manufacturing and services PMI reports from across the Euro area, with Germany driving Eurozone growth to the strongest level so far this year, as cited by Markit.German Markit manufacturing flash PMI for Oct came in at 55.1 versus 54.4 expected, while the Eurozone flash manufacturing PMI results stood at 53.3 versus 52.6 predicted. Looking ahead, the major now awaits the US flash manufacturing PMI report and speeches from Fed members Bullard and Dudley due later in the NA session. In terms of technicals, the pair finds the immediate resistance 1.0911 (5-DMA). A break beyond the last, doors will open for a test of 1.0953 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0850 (psychological levels) below which 1.0820 (March lows) and 1.0800 (round figure) could be tested.

GBP/USD: Recovery gains traction, nears 1.2250
The recovery in the GBP/USD pair gathered steam over the last hour, now pushing the rate close towards the mid-point of 1.22 handle.GBP/USD jumps to tests 10-DMA .The cable found renewed bids and erased most loses as demand for the US dollar lost strength as the UK traders hit their desks. The USD index moved further away from fresh eight-month peaks to now trade flattish near daily lows of 98.60.Further, positive opening seen on the European markets combined with a bounce in oil prices, provided extra legs to the ongoing recovery in the major. Meanwhile, markets digest the latest speech delivered by BOE policymaker Shafik on the ?Monetary, Financial and Prudential Policy Interactions in the Post-Crisis World? this Monday.Next of note for the major remains the UK CBI industrial order expectations data ahead of the US manufacturing PMI and BOE Carney?s speech due later in the American session.The pair finds immediate resistances placed at 1.2263 (Oct 21 high), 1.2300 (Oct 20 high) and 1.2334 (Oct 19 high). While supports are lined up at 1.2185 (daily low) and 1.2134 (Oct 17 low) and below that at 1.2100 (round figure).

EUR/JPY hits fresh session peak after EU PMI
The shared currency caught fresh bids across the board following the release of update Euro-zone PMI prints, lifting the EUR/JPY cross to a fresh session high level near 113.20 region.Better-than-expected releases of Euro-zone PMI readings for October helped snap ECB-led selling pressure around the shared currency. The flash version of Euro-zone manufacturing PMI rose to 53.3 from previous month's 52.6, while services PMI jumped to 53.5 from September's 52.2. The composite PMI index climbed to 53.7 in October as compared to 52.8 expected and September's final reading of 52.6. Meanwhile, improvement in investor risk appetite, as depicted by positive sentiment surrounding European equity markets, provided additional boost to the pair's recovery momentum. Going forward, broader market sentiment towards riskier assets will be the key factor determine the safe-haven demand of the Japanese Yen and eventually provide fresh impetus for the pair.A follow through buying interest is likely to assist the cross further towards 113.50 horizontal resistance above which a fresh bout of short-covering has the potential to lift the pair immediately towards 50-day SMA resistance near 114.10-15 region.On the downside, renewed weakness back below 113.00 handle now seems to drag the pair below session low support near 112.85 region towards testing Friday's swing low support near 112.60 region.

USD/CAD sees its volatility dampen
USD/CAD is climbing the charts consistently while exhibiting a very low volatility.USD/CAD currently trading well above the 50-EMA, radiates its bullish condition. But at the same time, as outlined from an hourly perspective, it has shrunk its intraday volatility to a minimum not seen for over a week of trading.There is potential for extra pips to be offered to traders in the basket of the bull, but attention should be paid to the parabolic SAR indicator: the SAR has been trailing the ascent move for more than 16 consecutive hours and could reverse direction at any moment, offering a signal to liquidate longs.This technical condition is usually associated with the formation of gently upward sloping channels.

EUR/GBP muted around 0.8900 after EU PMI
The EUR/GBP cross has been confined within a narrow trading band on Monday and has now erased its tepid recovery gains to session peak level of 0.8914.Currently hovering around 0.8900 handle, the cross had a muted reaction to better-than-expected flash Euro-zone PMI prints for October. The composite Euro-zone flash manufacturing PMI came-in at 53.3 as against 52.6 expected, while services PMI printed 53.5 versus expected reading of 52.5.The ongoing recovery staged by both, the GBP/USD and the EUR/USD majors, has failed to provide any directional impetus for the EUR/GBP cross and the cross was seen consolidating around a two-week low touched last week in the aftermath of ECB-led intense selling pressure around the shared currency. Next on tap would be the release of CBI Industrial Orders expectations from UK, which again is likely to be a non-event for the cross.Immediate resistance beyond 0.8915 (session high) is pegged at 0.8930 level above which the cross is likely to extend the rebound towards 0.8975 resistance area. On the downside, a follow through selling pressure below 0.8890 now seems to accelerate the slide towards 0.8840 intermediate support en-route its next major support near 0.8800 handle.

US Dollar trims gains, back near 98.60
The greenback, tracked by the US Dollar Index, has reverted the initial positive performance and has now returned to the 98.65/60 band.The index remains in multi-month highs at the beginning of the week, although the recent strong upside momentum seems to have lost some vigour following the opening bell in the Old Continent.Increasing expectations of a move by the Federal Reserve by year-end continue to support the solid demand for the buck. In fact, according to CME Group?s FedWatch tool, the probability of a rate hike in December stays at 64%.Adding to USD momentum, the latest CFTC report showed the build up in USD speculative longs have taken net longs to the highest level since December 2015 during the week ended on October 18.On the data front, Markit?s advanced Manufacturing PMI and the Chicago Fed National Activity index are due. In addition, NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral) are all due to speak later.The index is losing 0.01% at 98.68 and a break below 97.47 (low Oct.12) would aim for 97.01 (20-day sma) and finally 95.82 (200-day sma). On the other hand, the initial hurdle aligns at 98.82 (high Oct.24) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3).

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