EUR/USD: Sellers in control, back below 200-DMA

Dhwani Mehta FXStreet

The EUR/USD pair’s recovery 1.11 handle lost steam near 1.1120 region, and the prices retreated thereon, now pushing further below 200-DMA located at 1.1098 as the greenback regain ground against its major competitors.

EUR/USD comes down to test 5-DMA at 1.1082

Currently, EUR/USD now trades 0.14% lower at fresh session lows of 1.1088, unable to sustain the recovery above 1.11 barrier. The main currency pair wiped-out gains and came under strong selling pressure over the last hour, mainly in response to renewed buying interest seen around the US dollar across the board. Meanwhile, the US dollar index turned positive and now trades +0.07% higher at fresh session tops of 96.03.

Moreover, ECB headlines released a day before, suggesting that the central bank could lose QE rules in a bid to boost investment and credit growth after the Brexit fallout, also continues to dampen the sentiment around the EUR. While persistent risk-on trades in the global stock markets also curbs the funding currency demand for the euro across the board.

In the day ahead, a raft of final manufacturing PMI reports from across the Euro area economies will be released ahead of the US manufacturing PMI data due later in the NY session. Besides, Brexit-related news flow will be closely monitored for fresh direction on the major.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1150 (psychological levels/ 10-DMA). A break beyond the last, doors will open for a test of 1.1164 (1h 200-SMA/ daily R1). On the flip side, the immediate support is placed at 1.1082 (5-DMA) below which at 1.1069 (1h 100-SMA) 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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