EUR/USD rejected at 200-DMA, back to square one

The bullish run in the EUR/USD pair lost legs just ahead of 200-DMA located at 1.1100 levels, sending the prices lower, back around the familiar range near 1.1060 region.

EUR/USD retests 5-DMA at 1.1065

Currently, EUR/USD trades +0.07% higher at 1.1070, having found fresh bids at 1.1060. The main currency pair fades a spike to 1.11 handle and drifted lower over the last hour, as the demand for the funding currency took a hit amid sharply higher European equities. The German DAX jumps +1.56%, the UK’s FTSE rockets +2%, while the pan-European benchmark, the Euro Stoxx 50 flies +2.42%.

However, the retreat in the major found fresh support near 5-DMA at 1.1065 as subdued trading activity seen around the greenback across the board, keeps EUR/USD underpinned. The USD index now trades -0.12% lower at 96.08, moving-off lows struck previously at 95.87.

Looking ahead, the German CPI and US dataflow will fill in the trading calendar ahead, while the gathering of the European Union's member countries gather in Brussels for the second day to discuss Brexit, will be closely eyed.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1100/03 (200-DMA/ daily high). A break beyond the last, doors will open for a test of 1.1150 (psychological levels). 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.