EUR/USD challenging 100-DMA support at 1.1185

The EUR/USD pair remained well offered for second straight session and has now dropped back to 100-day SMA immediate support. 

Currently trading at a fresh weekly low around 1.1185 region, the pair came under renewed selling pressure amid broad based greenback recovery supported by Tuesday's surprisingly stronger-than-expected US consumer confidence index. Moreover, the ongoing worries over European banking sector is weighing on the shared currency and exerting further selling pressure around the major.

Even from technical perspective, the pair has repeatedly faced rejections near 1.1275-80 strong resistance area and hence, a sustained weakness below 100-day SMA would turn the pair vulnerable to extend its slide further. As Carol Harmer, Founder at charmertradingacademy.com, notes, "Euros are really captured within this large base pattern evident on the weekly charts....Now we are in the middle of the range...with all time frames I am looking at showing to be pointing lower...except the 4hrly chart...This still points lower...but at much lower levels than the rest....So we are looking currently for a place to sell the Eur...."

Looking forwards, traders today will confront the release of monthly durable goods orders data from the US. Later during the day, Fed Chair Janet Yellen's testimony, followed by ECB President Mario Draghi's speech, will be in spotlight and should provide fresh impetus for the pair's near-term trajectory. 

Technical levels to watch

A follow through selling pressure below 100-day SMA is likely to drag the pair immediately towards the very important 200-day SMA support near 1.1160-55 region en-route monthly lows support near 1.1125-20 area. Meanwhile on the upside, recovery momentum back above 1.1200 handle might now confront strong resistance near 1.1220 level, which if cleared should assist the pair back towards 1.1250-70 strong supply zone.