EUR/USD recovers further, 1.1100 on sight

The shared currency is extending its rebound from daily lows in the 1.09 area vs. the greenback, pushing EUR/USD to the current 1.1065/70 band.

EUR/USD weaker on ‘Brexit’ vote

Spot has quickly plummeted to the 1.0900 neighbourhood after the EU-UK Referendum showed the ‘Leave’ option clinched a tight win with nearly 52% of the votes, catching markets off-guard after poll results on Thursday were pointing to a ‘Remain’ victory.

All eyes are now on the European markets, with German Bund yields tumbling to record lows and equity markets expected to trade deep in the red territory.

In the data space, the German IFO is due, although its results should be largely ignored against the current effervescent backdrop.

EUR/USD levels to watch

The pair is now losing 2.71% at 1.1075 and a break below 1.0913 (low Jun.24) would open the door to 1.0820 (low Mar.10) and finally 1.0709 (low Jan.5). On the flip side, the immediate hurdle lines up at 1.1259 (20-day sma) followed by 1.1296 (55-day sma) and then 1.1427 (high Jun.23).