EUR/USD re-tests 1.1200 in early Europe, ECB Draghi eyed

Dhwani Mehta FXStreet

After having skid below 1.12 handle in early Asia, the EUR/USD pair is trying another attempt to regain the last, in wake of fresh selling seen in the greenback across the board.

EUR/USD flirts with 20-DMA at 1.1201

Currently, EUR/USD trades +0.07% higher at 1.1198, bouncing-off lows struck at 1.1185 earlier on the day. The main currency pair swings back into gains in early Europe, as the European traders hit their desks and react negatively to the latest Fed decision, sending the US dollar back into the red against its major peers.

The Fed decision disappointed markets and hurt the US dollar badly after the central bank kept the market still guessing whether a Fed rate hike remains on the cards this year.

Focus now shifts to ECB Draghi’s speech and US existing home sales amid holiday-thinned trading, as the Japanese markets are closed today on a national holiday.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1213 (Sept 20 high). A break beyond the last, doors will open for a test of 1.1256 (Sept 16 high). On the flip side, the immediate support is placed at 1.1173 (5-DMA) below which 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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