EUR/USD regains 1.1000 and beyond

The shared currency is now prolonging its bounce off session lows, sending EUR/USD back above the critical 1.10 handle.

EUR/USD supported near 1.0980

Spot remains entrenched in the negative territory during the first half of the week following the rejection from the 1.1080/90 band, where is located the critical 200-day sma.

The continuation of the bid tone around the greenback remains the exclusive driver of the pair’s price action along with swelling cautiousness ahead of the ECB meeting due tomorrow.

Market consensus sees the central bank extending its ‘wait-and-see’ stance, while it continues to assess the potential implications of the ‘Brexit’ vote and the probable moves by the BoE.

EUR/USD levels to watch

The pair is now losing 0.12% at 1.1008 and a breakdown of 1.0982 (low Jul.20) would open the door to 1.0913 (post-Brexit low Jun.24) and then 1.0820 (low Mar.10). On the flip side, the initial up barrier aligns at 1.1083 (200-day sma) followed by 1.1094 (20-day sma) and finally 1.1166 (high Jul.14).