EUR/USD recovers further to 1.1065, Monday’s high eyed?

The shared currency sees a relief rally against its American counterpart so far this Tuesday, extending the recovery on 1.10 handle and now looks to test Monday’s high posted at 1.1083 on its way higher.

EUR/USD: 5-DMA (1.1124) eyed

Currently, EUR/USD now rises +0.33% to trade near fresh daily highs of 1.1064, bouncing-off lows reached at 1.1010 in early Asia. The main currency pair extends its gradual recovery mode and catches a fresh bid tone over the last hour in response to improving risk sentiment, as indicated by rebounding DAX and FTSE futures.

Moreover, markets resort to profit-taking on their EUR shorts before the EU Economic Summit commences which may be centred on the Brexit decision and hence, could very well have significant impact on the GBP and EUR. While a downward correction seen in the US dollar against its six major peers, also aids the recovery in the EUR/USD pair.

Calendar-wise, we have a data-empty European session ahead, while from the US docket, the final GDP figures, consumer confidence and S&P/CS Composite-20 HPI y/y will be lined up for release later 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 1.1102 (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.