EUR/USD taps 1.1200 handle for the first time since Brexit vote

Haresh Menghani FXStreet

The EUR/USD pair maintained its strong bid tone and touched 1.1200 handle for the first time since the historic Brexit referendum on June 23.

After a brief pause on Monday, a broadly weaker US Dollar is extending support for the major to continue with its near-term upward trajectory on Tuesday. The pair got an additional boost after data from Euro-zone showed the number of unemployed people in Spain dropped more-than-expected during the month of July.

In absence of any major economic releases during European trading session, the pair seems more likely to continue gain support from a broadly weaker sentiment surrounding the greenback.

Later during NA trading session, Federal Reserve's preferred inflation gauge, Core PCE Price Index, would provide fresh impetus for near-term direction of the pair.

Technical levels to watch

From current levels the pair seems to extend its upward trajectory towards its next major resistance near 1.1230 region, above which a fresh leg of up-move would be triggered and lift the pair towards 1.1300 round figure mark.

On the flip side, 1.1170 level now seems to act as immediate support. A follow through selling pressure, dragging the pair below 1.1150 level, has the potential to drag the pair towards 1.1115-10 area ahead of the very important 200-day SMA support near 1.1075 region.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	High
1H	Bullish	Neutral	Expanding
4H	Bullish	Neutral	Low
1D	Bullish	Oversold	Expanding
1W	Strongly Bearish	Neutral	Expanding
Updated Aug 1, 06:30 GMT

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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