EUR/USD under pressure amid positive equities, tests 1.1050

Having failed to break above 1.11 handle in overnight trades, the EUR/USD pair extends its retreat further in the Asian morning as the US dollar remains bid against most of its major peers.

EUR/USD drops below 5-DMA at 1.1063

Currently, EUR/USD now drops -0.13% to fresh session lows of 1.1050, having met fresh offers near 1.1080 region last hours. The main currency pair fails to keep the bids and came under fresh selling pressure post-Tokyo open as the demand for the US dollar returned as the Asian traders cheered upbeat growth and sentiment numbers from the world’s largest economy, the US. The USD index trades +0.07% higher near fresh session highs of 96.27.

Moreover, concerns surrounding the Brexit issue continue to weigh on the EUR/USD pair, while persistent risk-on rally in the global equities also undermine the funding currency status of the EUR.

Focus remains on the second day of the EU Summit, while a bunch of fresh US macro news will be also closely eyed for further moves in the greenback. The US calendar offers core PCE index, personal spending and pending home sales data for today.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1083 (Monday’s high). A break beyond the last, doors will open for a test of 1.1100 (200-DMA). On the flip side, the immediate support is placed at 1.0971 (Jun 26 low) below which at 1.0913 (Brexit low) could be tested.