EUR/USD stalls recovery at 1.1285, German data weighs

The ongoing recovery in the EUR/USD pair lost steam near 1.1290 region following the release of poor German trade data, which hit the sentiment around the EUR.

EUR/USD: A  retest of 20-DMA (1.1236) likely?

Currently, EUR/USD trades +0.11% higher at 1.1271, easing-off session tops reached earlier at 1.1285. The main currency pair fails to sustain the recovery from post-ECB troughs and now drifts lower, as the US dollar stalls corrective slide and trims losses against its major competitors. The USD index now trades -0.09% lower at 94.95, against a -0.20% drop seen previously.

The recovery witnessed in EUR/USD is mainly driven by a corrective slide in the greenback against its major peers, which is triggered by falling US treasury yields in response to uncertainty over the timing of the next Fed rate hike this year. The USD index keeps pushing lower, now down -0.18% around session lows of 94.84.

Moreover, the latest German trade report that showed shrinking trade surplus, weaker exports and imports, also led to a fresh bout of selling behind the EUR/USD pair. The major  now awaits fresh impetus from the broader market sentiment, as the EUR calendar remains pretty quiet today.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1236 (20 & 5-DMA) below which 1.1200 (10-DMA) could be tested.