EUR/USD meets fresh supply at 1.1260

Dhwani Mehta FXStreet

EUR/USD finally broke its consolidation phase to the upside in the European session, although failed to hold at higher levels and drifted to the familiar range back below 1.1250 levels.

EUR/USD eyes 5-DMA at 1.1235

Currently, EUR/USD trades -0.06% lower at 1.1246, deflating from session highs scored at 1.1259. The main currency reverses an upward spike and now gravitates near the mid-point of 1.12 handle, although the downside remains capped amid deteriorating risk sentiment as the European stocks pare gains and oil prices extend the downside.

Moreover, markets move past the US election debate-driven renewed optimism, resulting into muted trading activity seen around the greenback against its major peers, which also keeps the sentiment around EUR/USD somewhat underpinned.

All eyes now remain on the US macro news lined up for release later in the NA session for further impetus on the major. While speeches from Fed officials will also grab a lot of attention ahead of Yellen’s testimony due tomorrow.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1259 (Daily high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1219 (Sept 26 low) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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