EUR/USD looks to regain 1.1750 amid weaker DXY, risk-off
|The EUR/USD pair remained better bid in Asia on the final trading day of the week, having found fresh buyers just ahead of 1.17 handle, as investors look to take cues from the USD dynamics and persisting risk trends amid a data-light trading calendar ahead.
EUR/USD headed to 5-DMA at 1.1746
The spot witnessed a volatile session on Thursday, with good two-way businesses experienced, after the prices fell sharply during Europe on large option expiries casting a shadow on the Euro, while ECB minutes also added to the sell-off in the major.
The ECB minutes showed that the members of the Council were worried over the exchange rate appreciation and felt that accommodation was needed in either direction.
However, in the last US session, the EUR/USD pair regained footing and jumped to 1.1754 levels, following the release of downbeat US industrial figures and amid renewed US political jitters.
Later in the overnight trades, the pair fell back towards 1.17 handle, after the Barcelona ‘Terror Attack’ news took the wind out the Euro recovery. Forex today: risk sentiment affected by Barcelona 'Terror Attack'
In the day ahead, it remains to be seen if the major manages to regain 1.1750 barrier amid ongoing US dollar weakness and risk-off market profile, while the second-liner economic releases in the German PPI and current account are expected to have little impact on the Euro. From the US, the prelim consumer sentiment could offer some respite to the USD bulls ahead of the Fed official Kaplan’s speech.
EUR/USD Technical Set-up
According to Valeria Bednarik, Chief Analyst at FXStreet, “The dollar is far from strong, but the ongoing slide may continue mostly due to bulls giving up after the pair faltered once again to regain the 1.1800 while it keeps on posting lower lows. Renewed selling interest below 1.1685 should lead to another leg lower, still eyeing a test of the daily ascendant trend line coming from April's low, now around 1.1580. Support levels: 1.1685 1.1650 1.1610 Resistance levels: 1.1770 1.1820 1.1860.”
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