EUR/USD looks to extend the bounce above 1.1160

The EUR/USD pair keeps its range near daily tops of 1.1159, and manages to regain the bids amid a broadly subdued US dollar and treasury yields.

EUR/USD: Eyes on EUR/GBP amid Brexit talks

The spot is on a tepid recovery path so far this session, having found buyers once again near 1.1135-40 band, as the USD bulls take a breather after yesterday’s hawkish Fedspeak-led massive upsurge. Meanwhile, slightly weaker treasury yields across the curve also helps keep the bid tone intact around EUR/USD.

However, the major may not sustain the bounce as the Euro continues to suffer from a dovish ECB outcome, while the greenback may resume its upbeat momentum versus its main competitors, underpinned by hawkish comments from the FOMC member Dudley.

In the day ahead, the spot will closely track the USD dynamics and EUR/GBP price-action, in the wake of upcoming Fedspeaks and ongoing Brexit talks, while the economic calendar remains relatively light, except for the second-tier current account data from both continents.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank noted: “The Euro has failed at the 20 day ma and again sold off to the base of the channel at 1.1138. Rallies are struggling to overcome the 20 day ma at 1.1208 and we look for failure here. Below 1.1138 channel should be enough to trigger losses to the 1.1070/23.6% retracement of the move higher this year and then the 55 day ma at 1.0986.”

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