EUR/USD steady around 1.1035 but lacking follow-up momentum

The EUR/USD pair has failed to build on to its better-than-expected services PMI-led tepid gains to 1.1040 region and continues to hover around 1.1030-40 band. 

Despite of its inability to extend the bullish momentum, the pair has shown some resilience and now seems to be confined in a narrow trading band. 

Upbeat sentiment around the US Dollar seems to act as a major barrier hindering any sharp up-move for the major. Adding to this, possibilities of further monetary easing by ECB at its September meeting also seems to weigh on the shared currency. 

Barring a disappointment from Philly Fed manufacturing index for July, Thursday's better-than-expected economic releases continued pointing towards the underlying strength of the US economic recovery and further boosting expectations of an imminent Fed rate-hike later during this year, which now seems to restrict any swift recovery for the EUR/USD pair. 

Technical levels to watch

On the upside, 1.1040-50 zone now seems to have emerged as immediate resistance, above which the pair might continue to confront resistance at the very important 200-day SMA near 1.1080-1.1100 region. On the downside, 1.1000-1.0980 area might continues to provide strong support, which if broken seems to drag the pair immediately towards 1.0950 intermediate support before dropping back towards retesting Brexit-led swing lows support near 1.0900 handle.