EUR/USD bounces-off 200-DMA, challenges 1.1120

The EUR/USD pair is seen making minor-recovery attempts above 1.11 handle, having found solid support at 200-DMA located at 1.1087.

EUR/USD testing 20-DMA at 1.1112

Currently, EUR/USD now trades +0.18% at fresh session highs of 1.1111, heading for a test of Wednesday’s high reached at 1.1120. The main currency pair extends its gradual recovery mode from the 200-DMA support, and now catches fresh bids above 1.11 handle on the back of renewed weakness seen in the greenback across the board. Meanwhile the USD index drops -0.17% to fresh session lows of 96.19.

The shared currency remains bid despite, improving risk sentiment seen around the Asian equities; as the greenback continues to lose ground following weak US jobs openings and import prices data. The US import prices increased only 0.2% last month after a 1.4% gain in May. Markets had estimated a 0.5% gain in June.

Calendar-wise, the BOE policy outcome will be closely eyed for any “rub-off” effect on the euro, while the US PPI and jobless claims will hog the limelight in the NA session today.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1120/50 (Jul 13 high/ psychological levels). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1081/73 (10 & 5-DMA) below which 1.1029/22 (Jul 6 & Jun 30 low) could be tested.